A Comparison of Survey and Incentivized-Based Risk Attitude Elicitation

Jim Engle-Warnick, Diego Pulido and Marine de Montaignac

CIRANO Working Papers from CIRANO

Abstract: This paper reports results from an on-line economics experiment with heads of households that explores the link between a sample of survey questions on the Canadian Know-Your-Client survey form and several incentivized laboratory instruments, both aimed at measuring risk attitudes and loss aversion. We find that the instruments significantly predict responses to risk questions, with the exception of a question that includes a time dimension. By contrast, the loss aversion instruments do not predict responses to loss questions. Indeed, if anything, risk instruments predict the majority of the loss questions. We conclude that the survey appears to be successful in eliciting attitudes towards risk; that the survey appears to be less successful with regard to loss aversion; and that it may be useful to include survey questions about higher order risk preferences on the form.

Keywords: Risk preferences; Risk preference elicitation; Prudence; Temperance; Ambiguity; Investing behavior (search for similar items in EconPapers)
JEL-codes: C90 D03 G02 G11 (search for similar items in EconPapers)
Date: 2016-08-23
New Economics Papers: this item is included in nep-cbe and nep-upt
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Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:2016s-40

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