Preference reversal phenomenon at individual level

The preference reversal phenomenon has been firstly observed in late 1960 s and extensively studied afterwards. Usually, if a pair of lottery includes a P-bet with higher probability to win a moderate amount and a $-bet with a lower probability to win a bigger amount, subjects tend to choose the P-bet when making choice, but offer a higher selling price for the $-bet , which is inconsistence. It cannot be explained by the standard economic theory but the phenomenon is rather robust and exists in other fields such as health-related decisions and product purchase. Thus, the reasons behind is widely discussed. However, none of them can solely explain this anomaly. In contrast to the previous studies, the aim of our research projects is to contribute the understanding of preference reversal phenomenon at individual level. The preliminary study we have conducted indicated that although with distinction, every subject has conducted a certain degree of preference reversal when valuing lotteries. Future research which tries to explain the different degree of the phenomenon rather than the existence of it should be fruitful. Moreover, lottery pairs with some variations are designed for further study as a complementation.