We explore risk preference elicitation when subjects choose directly from an exogenously specified set of lotteries. Our choice tasks differ incrementally, e.g., from choosing between two lotteries to selecting a portfolio from a continuous set of bundled Arrow securities, and from text to spatial presentation. Each subject completes multiple instances of five different tasks, and responses for each task are summarized in parametric (CRRA) and non-parametric (normalized risk premium) measures of risk preference. Variation in task attributes explains much of the observed wide variation in elicited preferences and in correlations across task pairs. (C) 2022 The Author(s). Published by Elsevier Inc.
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Elsevier
