Circles and triangles an experimental estimation of indifference lines in the marschak‐machina triangle

Abstract

Abstract An experiment in which 68 subjects are asked 60 pairwise preference questions involving random prospects from 4 Marschak‐Machina Triangles is used to estimate 3 preference functional: Subjective Expected Utility, Difference Regret and Generalized Regret. The Difference Regret formulation fits significantly worse than the other two but Generalized Regret does not appear to fit significantly better than SEU, at least for the majority of the subjects.