Eliciting individual risk attitudes - different procedures, different findings

Sven Grüner, Norbert Hirschauer and Felix Krüger
Authors registered in the RePEc Author Service: Sven Gruener

International Journal of Information and Decision Sciences, 2023, vol. 15, issue 3, 221-242

Abstract: We compare three procedures for eliciting individual risk attitudes: Holt and Laury (2002), Eckel and Grossman (2002) and the general willingness-to-take-risks question of the German socio-economic panel. Using a within-subject design, we carry out a classroom experiment with students who are enrolled in the degree programs Physics, Computer Sciences, Agricultural Sciences, Law, and History. We find that the risk attitudes as measured by the three procedures diverge substantially. This poses a serious challenge to the validity of these measurement instruments.

Keywords: risk-attitude; Eckel-and-Grossman procedure; Holt-and-Laury procedure; self-reported willingness-to-take-risks; bounded rationality. (search for similar items in EconPapers)
Date: 2023
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Working Paper: Eliciting individual risk attitudes – different procedures, different findings (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijidsc:v:15:y:2023:i:3:p:221-242

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