The Effect Of An Additional Alternative On Measured Risk Preferences In A Laboratory Experiment In Peru
AbstractWe experimentally test for the effect of an additional alternative on the measured risk preferences of farmers in rural Peru. In our experiment, subjects revealed their risk was always dominated by one of the two existing gambles. We found that subjects chose this gamble nearly one quarter of the time, in some cases causing the subjects to appear to be more risk loving. We found that subjects in a traditional laboratory environment did not choose the dominated gamble, but their choices were affected by its presence.
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Bibliographic InfoPaper provided by McGill University, Department of Economics in its series Departmental Working Papers with number 2006-10.
Length: 36 pages
Date of creation: Sep 2006
Date of revision:
Other versions of this item:
- Jim Engle-Warnick & Javier Escobal & Sonia Laszlo, 2006. "The Effect of an Additional Alternative on Measured Risk Preferences in a Laboratory Experiment in Peru," CIRANO Working Papers 2006s-06, CIRANO.
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-09-23 (All new papers)
- NEP-CBE-2006-09-23 (Cognitive & Behavioural Economics)
- NEP-EXP-2006-09-23 (Experimental Economics)
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