Arbeitspapier
Varieties of risk elicitation
We explore a variety of risk preference elicitation procedures that involve direct choice from a set of lotteries, including budget lines (BL) and binary choice lists (HL). We find statistically significant violations of the expected utility hypothesis (EUH) consistent with disappointment aversion, and also find violations of first order stochastic dominance, but both sorts of violations are mostly small and only slightly impair the predictive power of a parametric implementation of EUH. The estimated coefficient of relative risk aversion, gamma, varies widely across individual subjects (consistent with EUH) and also across elicitation tasks (inconsistent with direct implementation of EUH). An alternative nonparametric measure of risk preferences displays similar patterns. The two risk preference measures are highly correlated with each other for each elicitation task. Each separate measure varies widely across individual subjects and across elicitation tasks, with low to nil correlation between BL tasks and HL tasks. Some of the variation across tasks can be explained by attributes such as graphical vs text representation that have no role in decision theory.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Paper ; No. 744
- Classification
-
Wirtschaft
Design of Experiments: Laboratory, Individual
Criteria for Decision-Making under Risk and Uncertainty
Information and Uncertainty: Other
- Subject
-
Risk Aversion
Experiment
Elicitation
Multiple Price List
- Event
-
Geistige Schöpfung
- (who)
-
Friedman, Daniel
Habib, Sameh
James, Duncan
Crockett, Sean
- Event
-
Veröffentlichung
- (who)
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University of California, Economics Department
- (where)
-
Santa Cruz, CA
- (when)
-
2018
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Friedman, Daniel
- Habib, Sameh
- James, Duncan
- Crockett, Sean
- University of California, Economics Department
Time of origin
- 2018
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On the role of monetary incentives in risk preference elicitation experiments
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Varieties of risk elicitation
The "bomb" risk elicitation task
The Bomb risk elicitation task
The "bomb" risk elicitation task
The predictive power of risk elicitation tasks
Robust Inference in Risk Elicitation Tasks
A theoretical and experimental appraisal of five risk elicitation methods
A theoretical and experimental appraisal of five risk elicitation methods
Selection and mode effects in risk preference elicitation experiments
The risk elicitation puzzle revisited: Across-methods (in)consistency?
On the role of monetary incentives in risk preference elicitation experiments
On the role of monetary incentives in risk preference elicitation experiments
Varieties of risk elicitation
The "bomb" risk elicitation task
The Bomb risk elicitation task
The "bomb" risk elicitation task
The predictive power of risk elicitation tasks
Robust Inference in Risk Elicitation Tasks
A theoretical and experimental appraisal of five risk elicitation methods
A theoretical and experimental appraisal of five risk elicitation methods
Selection and mode effects in risk preference elicitation experiments
The risk elicitation puzzle revisited: Across-methods (in)consistency?
On the role of monetary incentives in risk preference elicitation experiments