EMPIRICAL EXPLORATIONS OF A HYPOTHESIS-TESTING MODEL OF BINARY CHOICE BEHAVIOR

Abstract : To explore behavior in binary choice experiments, a hypothesis-testing model is employed with subjects represented in a computer program. The basic assumption of this type of model is that the subject is entertaining hypotheses about patterns that he perceives in the random series of events. Various stimuli have been used for events of different experiments e.g., flashes of light, symbols on a deck of cards, spoken words. Results and discussion of simulated experiments are included.