Pay all subjects or pay only some? An experiment on decision-making under risk and ambiguity

Ilke Aydogan, Loïc Berger and Vincent Théroude

Journal of Economic Psychology, 2024, vol. 104, issue C

Abstract: We investigate the validity of a double random incentive system where only a subset of subjects is paid for one of their choices. By focusing on individual decision-making under risk and ambiguity, we show that using either a standard random incentive system, where all subjects are paid, or a double random system, where only 10% of subjects are paid, yields similar preference elicitation results. These findings suggest that adopting a double random incentive system could significantly reduce experimental costs and logistic efforts, thereby facilitating the exploration of individual decision-making in larger-scale and higher-stakes experiments.

Keywords: Experimental methodology; Payment methods; Incentives; Ambiguity elicitation (search for similar items in EconPapers)
JEL-codes: C90 D81 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:joepsy:v:104:y:2024:i:c:s0167487024000655

DOI: 10.1016/j.joep.2024.102757

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