Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/104323
Authors: 
Maier, Johannes
Rüger, Maximilian
Year of Publication: 
2010
Series/Report no.: 
Munich Discussion Paper 2010-33
Abstract: 
We propose a new method to elicit individuals' risk preferences. Similar to Holt and Laury (2002), we use a simple multiple price-list format. However, our method is based on a general notion of increasing risk, which allows classifying individuals as more or less risk-averse without assuming a specic utility framework. In a laboratory experiment we compare both methods. Each classies individuals almost identically as risk-averse, -neutral, or -seeking. However, classications of individuals as more or less risk-averse dier substantially. Moreover, our approach yields higher measures of risk aversion, and only with our method these measures are robust toward increasing stakes.
Subjects: 
Risk Aversion
Multiple Price-List
Elicitation
Laboratory Experiment
Holt and Laury Method
Mean Preserving Spreads
Non-EUT
Increasing Risk
JEL: 
D81
C91
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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