The binary lottery procedure does not induce risk neutrality in the Holt & Laury and Eckel & Grossman tasks

• Verfasst von: Kirchkamp, Oliver [VerfasserIn]
• Verfasst von: Oechssler, Joerg [VerfasserIn]
• Verfasst von: Sofianos, Andis [VerfasserIn]
• Titel: The binary lottery procedure does not induce risk neutrality in the Holt & Laury and Eckel & Grossman tasks
• Verf.angabe: Oliver Kirchkamp, Joerg Oechssler, Andis Sofianos
• E-Jahr: 2021
• Jahr: 19 March 2021
• Umfang: 22 S.
• Fussnoten: Gesehen am 15.06.2021
• Titel Quelle: Enthalten in: Journal of economic behavior & organization
• Ort Quelle: Amsterdam [u.a.] : Elsevier, 1980
• Jahr Quelle: 2021
• Band/Heft Quelle: 185(2021) vom: Mai, Seite 348-369
• ISSN Quelle: 1879-1751
• ISSN Quelle: 0167-2681
• DOI: doi:10.1016/j.jebo.2021.02.026
• Datenträger: Online-Ressource
• Sprache: eng
• Bibliogr. Hinweis: Erscheint auch als : Druck-Ausgabe: Kirchkamp, Oliver, 1962 - : The binary lottery procedure does not induce risk neutrality in the Holt & Laury and Eckel & Grossman tasks. - 2021
• Sach-SW: Binary lottery procedure
• Sach-SW: Experimental economics
• Sach-SW: Risk elicitation
• K10plus-PPN: 1760452491

Abstract

We test whether the binary lottery procedure makes participants behave as if they are risk neutral in the Holt and Laury (2002) and Eckel and Grossman (2002) tasks. Depending on the task, we find that less than half of the participants behave as if risk neutral. In fact, when we compare the distribution of choices, we find no significant difference to standard experiments that did not use the binary lottery procedure. Using a structural model we find modest evidence that the binary lottery procedure might move participants at least slightly towards risk neutrality.