To pay or not to pay: Measuring risk preferences in lab and field
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 o...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Cambridge University Press
2021-09-01
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| Series: | Judgment and Decision Making |
| Subjects: | |
| Online Access: | http://journal.sjdm.org/21/210614/jdm210614.pdf |
| _version_ | 1797712836410998784 |
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| author | Pablo Brañas-Garza Lorenzo Estepa-Mohedano Diego Jorrat Victor Orozco Ericka Rascón-Ramírez |
| author_facet | Pablo Brañas-Garza Lorenzo Estepa-Mohedano Diego Jorrat Victor Orozco Ericka Rascón-Ramírez |
| author_sort | Pablo Brañas-Garza |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-03-12T07:27:40Z |
| format | Article |
| id | doaj.art-de84b0d3e3634128a1de7dcb8d68cb56 |
| institution | Directory Open Access Journal |
| issn | 1930-2975 |
| language | English |
| last_indexed | 2024-03-12T07:27:40Z |
| publishDate | 2021-09-01 |
| publisher | Cambridge University Press |
| record_format | Article |
| series | Judgment and Decision Making |
| spelling | doaj.art-de84b0d3e3634128a1de7dcb8d68cb562023-09-02T22:06:58ZengCambridge University PressJudgment and Decision Making1930-29752021-09-0116512901313To pay or not to pay: Measuring risk preferences in lab and fieldPablo Brañas-GarzaLorenzo Estepa-MohedanoDiego JorratVictor OrozcoEricka Rascón-RamírezMeasuring 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.http://journal.sjdm.org/21/210614/jdm210614.pdfrisk preferences holt laury field experiments monetary payoffs incentivesnakeywords |
| spellingShingle | Pablo Brañas-Garza Lorenzo Estepa-Mohedano Diego Jorrat Victor Orozco Ericka Rascón-Ramírez To pay or not to pay: Measuring risk preferences in lab and field Judgment and Decision Making risk preferences holt laury field experiments monetary payoffs incentivesnakeywords |
| title | To pay or not to
pay: Measuring risk preferences in lab and field |
| title_full | To pay or not to
pay: Measuring risk preferences in lab and field |
| title_fullStr | To pay or not to
pay: Measuring risk preferences in lab and field |
| title_full_unstemmed | To pay or not to
pay: Measuring risk preferences in lab and field |
| title_short | To pay or not to
pay: Measuring risk preferences in lab and field |
| title_sort | to pay or not to pay measuring risk preferences in lab and field |
| topic | risk preferences holt laury field experiments monetary payoffs incentivesnakeywords |
| url | http://journal.sjdm.org/21/210614/jdm210614.pdf |
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