Title To pay or not to pay: Measuring risk preferences in lab and field
Authors BRAÑAS GARZA, PABLO ERNESTO, ESTEPA MOHEDANO, LORENZO, JORRAT, DIEGO ANDRÉS
External publication No
Means JUDGMENT AND DECISION MAKING
Scope Article
Nature Científica
JCR Quartile 2
SJR Quartile 2
JCR Impact 2.5
SJR Impact 0.983
Web http://journal.sjdm.org/vol16.5.html
Publication date 22/09/2021
ISI 000701799300007
Scopus Id 2-s2.0-85116348633
Abstract Measuring risk preferences using monetary incentives is costly. In the field, it might be also unfair and unsafe. The commonly used measure of Holt and Laury (2002) relies on a dozen lottery choices and payments, which make it time consuming and expensive. It also raises moral concerns as a result of the unequal payments generated by good and bad luck. Paying some but not all subjects may also create tensions between the researcher and subjects. In a pre-registered study in Honduras, Nigeria and Spain, we use a short version of Holt and Laury where we address all three concerns. We find in the field that not paying at all or paying with and without probabilistic rules makes no difference. Our hypothetical and short version makes our measurement of risk cheaper, fairer and safer.
Keywords risk preferences; Holt Laury; field experiments; monetary payoffs; incentives
Universidad Loyola members

Change your preferences Manage cookies