%T Eliciting Risk Preferences using Choice Lists
%O This is an open access article under the terms of the Creative Commons Attribution‐NonCommercial License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited and is not used for commercial purposes. https://creativecommons.org/licenses/by-nc/3.0/
%P 217-237
%D 2019
%L discovery10058627
%N 1
%J Quantitative Economics
%V 10
%A TL Kneeland
%A D Freeman
%A Y Halevy
%K random incentive system, isolation, independence axiom, multiple price list, reduction of compound lotteries, preference reversals, certainty effect.
%X 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 non-expected utility and the random incentive
system, as suggested by Karni and Safra (1987).