How to Measure Risk Attitudes.pptVIP

我们的实验 The first card drawn will indicate the decision that determines everyones earnings. The second card is drawn to determine the payoff for the option you chose. Decision Option A Option B Your Choice(A/B) 1 $2.00 if card is 1 $1.60 if card is 2-10 $3.80 if card is 1 $0.10 if card is 2-10 2 $2.00 if card is 1-2 $1.60 if card is 3-10 $3.80 if card is 1-2 $0.10 if card is 3-10 3 $2.00 if card is 1-3 $1.60 if card is 4-10 $3.80 if card is 1-3 $0.10 if card is 4-10 4 $2.00 if card is 1-4 $1.60 if card is 5-10 $3.80 if card is 1-4 $0.10 if card is 5-10 5 $2.00 if card is 1-5 $1.60 if card is 6-10 $3.80 if card is 1-5 $0.10 if card is 6-10 6 $2.00 if card is 1-6 $1.60 if card is 7-10 $3.80 if card is 1-6 $0.10 if card is 7-10 7 $2.00 if card is 1-7 $1.60 if card is 8-10 $3.80 if card is 1-7 $0.10 if card is 8-10 8 $2.00 if card is 1-8 $1.60 if card is 9-10 $3.80 if card is 1-8 $0.10 if card is 9-10 9 $2.00 if card is 1-9 $1.60 if card is 9-10 $3.80 if card is 1-9 $0.10 if card is 10 10 $2.00 if card is 1-10 $3.80 if card is 1-10 The first task subjects began by indicating a preference, Option A or Option B, for each of the ten paired lottery choices in Table 1, with the understanding that one of these choices would be selected at random ex post and played to determine the earnings for the option selected. The second decision task involved the same ten decisions, but with hypothetical payoffs at 20 times the levels shown in Table 1 ($40 or $32 for Option A, and $77 or $2 for Option B). The third task was also a high-payoff task, but the payoffs were paid in cash. The final task was a return to baseline treatment with the low money payoffs This paper presents the results of a simple lottery choice experiment that allows us to measure the degree of risk aversion over a wide range of payoffs, ranging from several dollars to several hundred dollars. In addition, we compare behavior under hypothetical and real incentives. Although behavior is slightly more erratic under t