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Experimental methods: Eliciting risk preferences

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  • Charness, Gary
  • Gneezy, Uri
  • Imas, Alex

Abstract

Economists and psychologists have developed a variety of experimental methodologies to elicit and assess individual risk attitudes. Choosing which to utilize, however, is largely dependent on the question one wants to answer, as well as the characteristics of the sample population. The goal of this paper is to present a series of prevailing methods for eliciting risk preferences and outline the advantages and disadvantages of each. We do not attempt to give a comprehensive account of all the methods or nuances of measuring risk, but rather to outline some advantages and disadvantages of different methods.

Suggested Citation

  • Charness, Gary & Gneezy, Uri & Imas, Alex, 2013. "Experimental methods: Eliciting risk preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 87(C), pages 43-51.
  • Handle: RePEc:eee:jeborg:v:87:y:2013:i:c:p:43-51
    DOI: 10.1016/j.jebo.2012.12.023
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    More about this item

    Keywords

    Risk preferences; Elicitation methods; Experimental methodology;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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