To pay or not to pay: Measuring riskpreferences in lab and field

Pablo Brañas-Garza, Lorenzo Estepa Mohedano, Diego Jorrat, Victor Orozco-Olvera and Ericka Rascón Ramírez
Additional contact information
Lorenzo Estepa Mohedano: Universidad Loyola
Ericka Rascón Ramírez: Middlesex University London
Authors registered in the RePEc Author Service: Ericka G. Rascon-Ramirez

No 67, Working Papers from Red Nacional de Investigadores en Economía (RedNIE)

Abstract: Measuring risk preferences in the field is critical for policy, however, it can be expensive and maygenerate unequal payoffs due to bad luck. For instance, the commonly used measure of Holt andLaury (2002) relies on a dozen of lottery choices and payments which makes it time consuming andcostly, but also raises moral concerns as a result of the unequal payments generated by the lotteries.We propose a short version of the Holt and Laury (2002) which produces in the lab (Spain) thesame results as the long HL. Using the short HL in the field (Honduras and Nigeria), we observethat paying or not for the measurement of risk preferences produces the same findings. Our low-costapproach makes the measurement of risk preferences simpler, faster and cheaper in the lab and field.

Keywords: Risk preferences; Holt Laury; Field Experiments; Monetary Payoffs; Incentives. (search for similar items in EconPapers)
JEL-codes: C91 C93 D81 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2021-05
New Economics Papers: this item is included in nep-cbe and nep-exp
References: Add references at CitEc
Citations: View citations in EconPapers (18)

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https://rednie.eco.unc.edu.ar/files/DT/2021-67.pdf (application/pdf)

Related works:
Journal Article: To pay or not to pay: Measuring risk preferences in lab and field (2021)
Working Paper: To pay or not to pay: Measuring risk preferences in lab and field (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:aoz:wpaper:67

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