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Lottery- and survey-based risk attitudes linked through a multichoice elicitation task

Author

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  • Giuseppe Attanasi
  • Nikolaos Georgantzís
  • Valentina Rotondi
  • Daria Vigani

Abstract

In this paper we compare two mutually uncorrelated risk-attitude elicitation tasks. In particular, we test for correlation of the elicited degrees of monetary risk aversion at a within-subject level. We show that sufficiently similar incentivized mechanisms elicit correlated decisions in terms of monetary risk aversion only if other risk-related attitudes are accounted for. Furthermore, we ask subjects to self-report their general willingness to take risks. We find evidence of some external validity of the two tasks as predictors of self-reported risk attitudes in general human domains.

Suggested Citation

  • Giuseppe Attanasi & Nikolaos Georgantzís & Valentina Rotondi & Daria Vigani, 2016. "Lottery- and survey-based risk attitudes linked through a multichoice elicitation task," Working Papers of BETA 2016-24, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2016-24
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    8. Irene Mussio & Maximiliano Sosa Andrés & Abdul H Kidwai, 2023. "Higher order risk attitudes in the time of COVID-19: an experimental study," Oxford Economic Papers, Oxford University Press, vol. 75(1), pages 163-182.
    9. Fišar, Miloš & Reggiani, Tommaso G. & Sabatini, Fabio & Špalek, Jiří, 2020. "Media Bias and Tax Compliance: Experimental Evidence," IZA Discussion Papers 12938, Institute of Labor Economics (IZA).
    10. David Johnson & John Barry Ryan, 2020. "Amazon Mechanical Turk workers can provide consistent and economically meaningful data," Southern Economic Journal, John Wiley & Sons, vol. 87(1), pages 369-385, July.
    11. Fabien Perez & Guillaume Hollard & Radu Vranceanu, 2021. "How serious is the measurement-error problem in risk-aversion tasks?," Journal of Risk and Uncertainty, Springer, vol. 63(3), pages 319-342, December.
    12. Sabater-Grande, Gerardo & García-Gallego, Aurora & Georgantzís, Nikolaos & Herranz-Zarzoso, Noemí, 2022. "The effects of personality, risk and other-regarding attitudes on trust and reciprocity," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 96(C).
    13. Galizzi, Matteo M. & Machado, Sara R. & Miniaci, Raffaele, 2016. "Temporal stability, cross-validity, and external validity of risk preferences measures: experimental evidence from a UK representative sample," LSE Research Online Documents on Economics 67554, London School of Economics and Political Science, LSE Library.
    14. Fabien Perez & Guillaume Hollard & Radu Vranceanu & Delphine Dubart, 2019. "How Serious is the Measurement-Error Problem in a Popular Risk-Aversion Task?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-02291224, HAL.
    15. Fabien, Perez & Guillaume, Hollard & Radu, Vranceanu & Delphine, Dubart, 2019. "How Serious is the Measurement-Error Problem in a Popular Risk-Aversion Task?," ESSEC Working Papers WP1911, ESSEC Research Center, ESSEC Business School.
    16. Serge Garcia & Julien Jacob & Eve-Angéline Lambert, 2021. "Efficiency of sharing liability rules: An experimental case," Working Papers of BETA 2021-07, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    17. Giuseppe Attanasi & Laura Concina & Caroline Kamaté & Valentina Rotondi, 2020. "Firm’s protection against disasters: are investment and insurance substitutes or complements?," Theory and Decision, Springer, vol. 88(1), pages 121-151, February.
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    More about this item

    Keywords

    Risk aversion; Elicitation method; Lottery choices.;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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