Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/98414
Authors: 
Cox, James C.
Sadiraj, Vjollca
Schmidt, Ulrich
Year of Publication: 
2014
Series/Report no.: 
Kiel Working Paper 1932
Abstract: 
Most experiments on decision theory ask individual subjects to make more than one decision. The isolation hypothesis is commonly used to justify the choice of the random lottery incentive mechanism as the preferred payoff protocol. This research note reports on the main findings on the theoretical and empirical performance of different payoff mechanisms on eliciting individuals' attitudes toward risk. It challenges the conventional view that the random lottery incentive mechanism introduces no biases in inducing risk preferences.
Document Type: 
Working Paper

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