The binary lottery procedure does not induce risk neutrality in the Holt-Laury and Eckel-Grossman tasks

We test whether the binary lottery procedure makes subjects behave as if they are risk neutral in the Holt-Laury and Eckel-Grossman tasks. Depending on the task we find that at most a third of subjects behave as if risk neutral. In fact, when we compare the distribution of choices we find no significant difference to earlier experiments in the same lab that did not use the binary lottery procedure.

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Year of publication:	2019
Authors:	Oechssler, Jörg ; Sofianos, Andis
Publisher:	Heidelberg : University of Heidelberg, Department of Economics
Subject:	risk elicitation \| binary lottery procedure \| experimental economics

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Series:	Discussion Paper Series ; 663
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	10.11588/heidok.00026438 [DOI] 1665909579 [GVK] hdl:10419/207638 [Handle]
Classification:	C91 - Laboratory, Individual Behavior ; C81 - Methodology for Collecting, Estimating, and Organizing Microeconomic Data
Source:	EconStor

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