Eliciting risk preferences: text vs. graphical multiple price lists

We introduce new graphical displays that present binary choice lotteries via three dimensional rotating pie charts whose heights represent the prize amounts. We compare four graphical versions to the original text-only Holt & Laury (2002) multiple price list. Parametric and non-parametric measures of risk preferences are found to shift towards risk neutrality for the graphical displays.

[1]  Leibniz-Informationszentrum Wirtschaft.  The willingness to pay-willingness to accept gap: A failed replication of Plott and Zeiler , 2015 .

[2]  Lars-Gunnar Svensson,et al.  Transferring ownership of public housing to existing tenants: a mechanism design approach , 2014 .

[3]  Alex Imas,et al.  Experimental methods: Eliciting risk preferences , 2013 .

[4]  Joaquim Silvestre,et al.  Measuring risk aversion with lists: a new bias , 2012, Theory and Decision.

[5]  J. Duffy,et al.  Equilibrium selection in similar repeated games: experimental evidence on the role of precedents , 2017, Experimental Economics.

[6]  Duncan James,et al.  Stability of risk preference parameter estimates within the Becker-DeGroot-Marschak procedure , 2007 .

[7]  Morten I. Lau,et al.  Elicitation using multiple price list formats , 2006 .

[8]  Nora Szech,et al.  Revenues and Welfare in Auctions with Information Release , 2015, J. Econ. Theory.

[9]  Ferdinand M. Vieider,et al.  Risk Taking for Oneself and Others: A Structural Model Approach , 2016 .

[10]  Dorothea Kübler,et al.  Take Your Time to Grow: A Field Experiment on the Hiring of Youths , 2019 .

[11]  Colin Camerer.  An experimental test of several generalized utility theories , 1989 .

[12]  Justin Valasek.  Reforming an Institutional Culture of Corruption: A Model of Motivated Agents and Collective Reputation , 2015, SSRN Electronic Journal.

[13]  S. Huck,et al.  More Effort with Less Pay: On Information Avoidance, Belief Design and Performance , 2015, SSRN Electronic Journal.

[14]  Charles A. Holt,et al.  Risk Aversion and Incentive Effects , 2002 .