Empirical evidence of inconsistency in Standard Gamble choices under direct and indirect elicitation methods
AbstractExpected Utility Theory (EUT) underlies the Standard Gamble (SG) method for eliciting people's preferences towards safety policy and risky treatments. Increasingly surveys using this method decompose the SG questions into two or more intermediate questions. Under the EUT assumption of procedural invariance these indirect responses are theoretically equivalent to those elicited directly through one question. We investigate the issue empirically in two studies, both of which find that procedure invariance is violated. Despite this, and the differences in the direction of the discrepancies that we observe in these studies, we show how these results are in fact consistent with an alternative theory to EUT - Prospect Theory - and discuss the implications for future policy and research.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Swiss Society of Economics and Statistics (SSES) in its journal Swiss Journal of Economics and Statistics.
Volume (Year): 137 (2001)
Issue (Month): I (March)
Contact details of provider:
Postal: c/o SNB/BNS, Börsenstrasse 15, PO Box 2800, CH-8022 Zürich
Phone: +41 (0)44 631 32 34
Fax: +41 (0)44 631 39 01
Web page: http://www.sjes.ch
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Anne Spencer, 2001. "The Implications of Linking Questions within the SG and TTO Methods," Working Papers 438, Queen Mary, University of London, School of Economics and Finance.
- Chilton, Susan M. & Burgess, Diane & Hutchinson, W. George, 2006. "The relative value of farm animal welfare," Ecological Economics, Elsevier, vol. 59(3), pages 353-363, September.
- Anne Spencer, 2001. "The Time Trade-Off Method: An Exploratory Study," Working Papers 437, Queen Mary, University of London, School of Economics and Finance.
- Mandy Ryan & Mabelle Amaya-Amaya, 2005. "' Threats ' to and hopes for estimating benefits," Health Economics, John Wiley & Sons, Ltd., vol. 14(6), pages 609-619.
- Anne Spencer, 2004. "The implications of linking questions within the SG and TTO methods," Health Economics, John Wiley & Sons, Ltd., vol. 13(8), pages 807-818.
- Adam Oliver, 2005. "Testing the internal consistency of the lottery equivalents method using health outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 14(2), pages 149-159.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Steiner).
If references are entirely missing, you can add them using this form.