Arbeitspapier
On the role of monetary incentives in risk preference elicitation experiments
Incentivized experiments in which individuals receive monetary rewards according to the outcomes of their decisions are regarded as the gold standard for preference elicitation in experimental economics. These task-related real payments are considered necessary to reveal subjects' "true preferences". Using a systematic, large-sample approach with three subject pools of private investors, professional investors, and students, we test the effect of task-related monetary incentives on risk preferences in four standard experimental tasks. We find no systematic differences in behavior between and within subjects in the incentivized and non-incentivized regimes. We discuss implications for academic research and for applications in the field.
- Language
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Englisch
- Bibliographic citation
-
Series: Working Papers in Economics and Statistics ; No. 2020-29
- Classification
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Wirtschaft
Design of Experiments: Laboratory, Individual
Microeconomic Behavior: Underlying Principles
Criteria for Decision-Making under Risk and Uncertainty
- Subject
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Risk Preferences
Incentives
Experimental Economics
Risk Aversion
- Event
-
Geistige Schöpfung
- (who)
-
Hackethal, Andreas
Kirchler, Michael
Laudenbach, Christine
Razen, Michael
Weber, Annika
- Event
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Veröffentlichung
- (who)
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University of Innsbruck, Research Platform Empirical and Experimental Economics (eeecon)
- (where)
-
Innsbruck
- (when)
-
2020
- 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
- Hackethal, Andreas
- Kirchler, Michael
- Laudenbach, Christine
- Razen, Michael
- Weber, Annika
- University of Innsbruck, Research Platform Empirical and Experimental Economics (eeecon)
Time of origin
- 2020
Other Objects (12)
On the role of monetary incentives in risk preference elicitation experiments
On the (ir)relevance of monetary incentives in risk preference elicitation experiments
Constrained preference elicitation
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Selection and mode effects in risk preference elicitation experiments
Selection and mode effects in risk preference elicitation experiments
Varieties of risk elicitation
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Risky Choices of Poor People: Comparing Risk Preference Elicitation Approaches in Field Experiments
The "bomb" risk elicitation task
The Bomb risk elicitation task
The "bomb" risk elicitation task
On the role of monetary incentives in risk preference elicitation experiments
On the (ir)relevance of monetary incentives in risk preference elicitation experiments
Constrained preference elicitation
Selection and mode effects in risk preference elicitation experiments
Selection and mode effects in risk preference elicitation experiments
Selection and mode effects in risk preference elicitation experiments
Varieties of risk elicitation
Varieties of risk elicitation
Risky Choices of Poor People: Comparing Risk Preference Elicitation Approaches in Field Experiments
The "bomb" risk elicitation task
The Bomb risk elicitation task
The "bomb" risk elicitation task
On the role of monetary incentives in risk preference elicitation experiments
On the (ir)relevance of monetary incentives in risk preference elicitation experiments
Constrained preference elicitation
Selection and mode effects in risk preference elicitation experiments
Selection and mode effects in risk preference elicitation experiments
Selection and mode effects in risk preference elicitation experiments
Varieties of risk elicitation
Varieties of risk elicitation
Risky Choices of Poor People: Comparing Risk Preference Elicitation Approaches in Field Experiments
The "bomb" risk elicitation task
The Bomb risk elicitation task