Estimating risky behavior with multiple-item risk measures
Lukas Menkhoff and
Journal of Economic Psychology, 2017, vol. 59, issue C, 59-86
We compare seven established risk elicitation methods and investigate how robustly they explain eleven kinds of risky behavior with 760 individuals. Risk measures are positively correlated; however, their performance in explaining behavior is heterogeneous and, therefore, difficult to assess ex ante. Greater diversification across risk measures is conducive to closing this knowledge gap. What we find is that performance increases considerably if we combine single-item risk measures to form multiple-item risk measures. Results are improved the more single-item measures they contain, and also if these single-item risk measures use different elicitation methods. Interestingly, survey items perform just as well as incentivized experimental items in explaining risky behavior.
Keywords: Risk; Experiments; Household survey; Testing methods; Contexts (search for similar items in EconPapers)
JEL-codes: D81 C93 O12 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Estimating Risky Behavior with Multiple-Item Risk Measures (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:joepsy:v:59:y:2017:i:c:p:59-86
Access Statistics for this article
Journal of Economic Psychology is currently edited by G. Antonides and D. Read
More articles in Journal of Economic Psychology from Elsevier
Bibliographic data for series maintained by Nithya Sathishkumar ().