Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/268749 
Year of Publication: 
2021
Series/Report no.: 
SAFE Working Paper No. 286
Version Description: 
October 26, 2021
Publisher: 
Leibniz Institute for Financial Research SAFE, Frankfurt a. M.
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

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.