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Experimental guidance for eliciting beliefs with the Stochastic Becker–DeGroot–Marschak mechanism

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  • Ingrid Burfurd

    (The University of Melbourne)

  • Tom Wilkening

    (The University of Melbourne)

Abstract

We compare different implementations of the Stochastic Becker–DeGroot–Marschak (SBDM) belief elicitation mechanism, which is theoretically elegant but challenging to implement. In a first experiment, we compare three common formats of the mechanism in terms of speed and data quality. We find that all formats yield reports with similar levels of accuracy and precision, but that the instructions and reporting format adapted from Hao and Houser (J Risk Uncertain 44(2):161–180 2012) is significantly faster to implement. We use this format in a second experiment in which we vary the delivery method and quiz procedure. Dropping the pre-experiment quiz significantly compromises the accuracy of subject’s reports and leads to a dramatic spike in boundary reports. However, switching between electronic and paper-based instructions and quizzes does not affect the accuracy or precision of subjects’ reports.

Suggested Citation

  • Ingrid Burfurd & Tom Wilkening, 2018. "Experimental guidance for eliciting beliefs with the Stochastic Becker–DeGroot–Marschak mechanism," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 4(1), pages 15-28, July.
    • Handle: RePEc:spr:jesaex:v:4:y:2018:i:1:d:10.1007_s40881-018-0046-5
    DOI: 10.1007/s40881-018-0046-5
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    14. Karl Schlag & James Tremewan & Joël Weele, 2015. "A penny for your thoughts: a survey of methods for eliciting beliefs," Experimental Economics, Springer;Economic Science Association, vol. 18(3), pages 457-490, September.
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    Cited by:

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    3. Burdea, Valeria & Woon, Jonathan, 2022. "Online belief elicitation methods," Journal of Economic Psychology, Elsevier, vol. 90(C).
    4. Joyce Guo & María P. Recalde, 2023. "Overriding in Teams: The Role of Beliefs, Social Image, and Gender," Management Science, INFORMS, vol. 69(4), pages 2239-2262, April.
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    7. Ingrid Burfurd & Tom Wilkening, 2022. "Cognitive heterogeneity and complex belief elicitation," Experimental Economics, Springer;Economic Science Association, vol. 25(2), pages 557-592, April.
    8. Charness, Gary & Gneezy, Uri & Rasocha, Vlastimil, 2021. "Experimental methods: Eliciting beliefs," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 234-256.

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    More about this item

    Keywords

    Beliefs; Elicitation; Prediction accuracy; Methodology;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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