Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/225015 
Year of Publication: 
2020
Series/Report no.: 
Working Paper No. 362
Publisher: 
University of Zurich, Department of Economics, Zurich
Abstract: 
This work reports an online experiment with a general-population sample examining the performance of budget-choice tasks for elicitation of risk attitudes. First, I compare the investment task of Gneezy and Potters (1997) with the standard choice- list method of Holt and Laury (2002), and evaluate their performance in terms of the number of correctly-predicted binary decisions in a set of out-of-sample lottery choices. There are no significant differences between the tasks in this sense, and performance is modest. Second, I included three additional budget-choice tasks (selection of a lottery from a linear budget set) where optimal decisions should have been corner solutions, and find that a large majority of participants provided interior solutions instead, casting doubts on subjects' understanding of tasks of this type.
Subjects: 
risk preferences
elicitation methods
budget sets
portfolio choices
JEL: 
C91
D81
C83
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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