Eliciting risk preferences using choice lists

We study the effect of embedding pairwise choices between lotteries within a choice list on measured risk attitude. Using an experiment with online workers, we find that subjects choose the risky lottery rather than a sure payment significantly more often when responding to a choice list. This behavior can be rationalized by the interaction between non-expected utility and the random incentive system, as suggested by Karni and Safra (1987).

• Publication year

  2019

• Venue

  Quantitative Economics

• Publication date

  2019-01-02

• Fields of study

  Economics

• Identifiers
  DOI 10.3982/QE856
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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