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Payoff and presentation modulation of elicited risk preferences in MPLs

Published online by Cambridge University Press:  17 January 2025

Sameh Habib Open the ORCID record for Sameh Habib [Opens in a new window] ,
Daniel Friedman ,
Sean Crockett  and
Duncan James
Sameh Habib*
Affiliation:
Economics Department, University of California, Santa Cruz, 401 Engineering 2 Building, 1156 High Street, Santa Cruz, CA 95064, USA
Daniel Friedman
Affiliation:
Economics Department, University of California, Santa Cruz, Santa Cruz, USA
Sean Crockett
Affiliation:
Zicklin School of Business, Baruch College, New York City, USA
Duncan James
Affiliation:
Economics Department, Fordham University, New York City, USA
*
e-mail: sfhabib@ucsc.edu
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Abstract

Since Holt and Laury (Am Econ Rev 92(5):1644–1655, 2002), the multiple price list (MPL) procedure has widely been used to elicit individual risk preferences. We assess the impact of varying list order and spacing, and of presentation via text or graphs. Relative to the original MPL baseline, some non-linear transformations of lottery prices systematically increase elicited risk aversion, while some graphical displays tend to reduce it.

Keywords

Multiple price listElicitationRisk aversionExperiment

JEL classification

D89: Other C91: Laboratory, Individual Behavior D81: Criteria for Decision-Making under Risk and Uncertainty
Type
Original Paper
Information
Journal of the Economic Science Association , Volume 3 , Issue 2 , December 2017 , pp. 183 - 194
Copyright
Copyright © Economic Science Association 2017

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Footnotes

Electronic supplementary material The online version of this article (doi:10.1007/s40881-016-0032-8) contains supplementary material, which is available to authorized users.

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