Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/217141 
Year of Publication: 
2019
Citation: 
[Journal:] Quantitative Economics [ISSN:] 1759-7331 [Volume:] 10 [Issue:] 1 [Publisher:] The Econometric Society [Place:] New Haven, CT [Year:] 2019 [Pages:] 217-237
Publisher: 
The Econometric Society, New Haven, CT
Abstract: 
We study the effect of embedding pairwise choices between lotteries within a choice list on measured risk attitude. Using an experiment with online workers, we find that subjects choose the risky lottery rather than a sure payment significantly more often when responding to a choice list. This behavior can be rationalized by the interaction between nonexpected utility and the random incentive system, as suggested by Karni and Safra (1987).
Subjects: 
Random incentive system
isolation independence axiom
multiple price list
reduction of compound lotteries
preference reversals
certainty effect
JEL: 
C90
C91
D81
D90
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

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