Holt and Laury, AER 2002, develop an experimental design to determine the risk aversion of an individual. They use their observations to argue that increased incentives appear to change risk attitudes, leading to greater risk aversion. However, their main treatment, the effects of scaling up the...

Hypothetical referenda have been proposed as an incentive- compatible mechanism that can be used to obtain social valuations of environmental resources. We employ experimental methods to test the hypothesis that such referenda are indeed incentive compatible. Our results lead us to reject that...