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

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  • Giuseppe Attanasi

    () (University of Lille 1, LEM (Lille Economics Management), Cité Scientifique)

  • Nikolaos Georgantzís

    (Burgundy School of Wine and Spirits Business
    University of Reading)

  • Valentina Rotondi

    (Politecnico di Milano)

  • Daria Vigani

    (Catholic University of the Sacred Heart)

Abstract

Abstract We analyze the results from three different risk attitude elicitation methods. First, the broadly used test by Holt and Laury (2002), HL, second, the lottery-panel task by Sabater-Grande and Georgantzis (2002), SG, and third, responses to a survey question on self-assessment of general attitude towards risk (Dohmen et al. 2011). The first and the second task are implemented with real monetary incentives, while the third concerns all domains in life in general. Like in previous studies, the correlation of decisions across tasks is low and usually statistically non-significant. However, when we consider only subjects whose behavior across the panels of the SG task is compatible with constant relative risk aversion (CRRA), the correlation between HL and self-assessed risk attitude becomes significant. Furthermore, the correlation between HL and SG also increases for CRRA-compatible subjects, although it remains statistically non-significant.

Suggested Citation

  • Giuseppe Attanasi & Nikolaos Georgantzís & Valentina Rotondi & Daria Vigani, 2018. "Lottery- and survey-based risk attitudes linked through a multichoice elicitation task," Theory and Decision, Springer, vol. 84(3), pages 341-372, May.
  • Handle: RePEc:kap:theord:v:84:y:2018:i:3:d:10.1007_s11238-017-9613-0
    DOI: 10.1007/s11238-017-9613-0
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    1. repec:eee:jeborg:v:155:y:2018:i:c:p:435-444 is not listed on IDEAS
    2. Barreda-Tarrazona, Iván & García-Gallego, Aurora & Georgantzís, Nikolaos & Ziros, Nicholas, 2018. "Market games as social dilemmas," Journal of Economic Behavior & Organization, Elsevier, vol. 155(C), pages 435-444.
    3. 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.
    4. Giuseppe Attanasi & Laura Concina & Caroline Kamate & Valentina Rotondi, 2018. "Firm's Protection against Disasters: Are Investment and Insurance Substitutes or Complements?," GREDEG Working Papers 2018-24, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis, revised Dec 2018.

    More about this item

    Keywords

    Risk aversion; Elicitation methods; Lottery choices;

    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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