Repeated experience and consistent risk preferences

Gary Charness and Nir Chemaya

Economics Letters, 2023, vol. 233, issue C

Abstract: Economists have developed various methods to elicit risk preferences, which can help forecast decision-making in risky scenarios. However, risk elicitation can be complex, and there remain unresolved challenges. Our research demonstrates that repeated exposure to risk elicitation tasks, such as the Holt-Laury and Eckel-Grossman tasks, results in individuals making more consistent decisions with less noise. This suggests that measuring risk preferences after individuals have gained experience and learning can yield more consistent outcomes and provide a more accurate representation of individual risk preferences.

Keywords: Risk preferences; Experience; Experimental methodology (search for similar items in EconPapers)
JEL-codes: B49 C81 C91 D81 D83 D91 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:233:y:2023:i:c:s0165176523004007

DOI: 10.1016/j.econlet.2023.111375

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