Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/238253 
Year of Publication: 
2020
Series/Report no.: 
Working Papers in Economics and Statistics No. 2020-29
Publisher: 
University of Innsbruck, Research Platform Empirical and Experimental Economics (eeecon), Innsbruck
Abstract: 
Incentivized experiments in which individuals receive monetary rewards according to the outcomes of their decisions are regarded as the gold standard for preference elicitation in experimental economics. These task-related real payments are considered necessary to reveal subjects' "true preferences". Using a systematic, large-sample approach with three subject pools of private investors, professional investors, and students, we test the effect of task-related monetary incentives on risk preferences in four standard experimental tasks. We find no systematic differences in behavior between and within subjects in the incentivized and non-incentivized regimes. We discuss implications for academic research and for applications in the field.
Subjects: 
Risk Preferences
Incentives
Experimental Economics
Risk Aversion
JEL: 
C91
D01
D81
Document Type: 
Working Paper

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