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

Daria Vigani, Giuseppe Attanasi, Nikolaos Georgantzís, Valentina Rotondi

Research output: Contribution to journalArticle

12 Citations (Scopus)

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.
Original languageEnglish
Pages (from-to)341-372
Number of pages32
JournalTheory and Decision
Volume84
DOIs
Publication statusPublished - 2018

Keywords

  • Elicitation methods
  • Lottery choices
  • Risk aversion

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