Multiple Switching Behaviour In Multiple Price Lists
- ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
- David Bruner Ph.D., Assistant Professor (Creator)
- Institution
- Appalachian State University (ASU )
- Web Site: https://library.appstate.edu/
Abstract: A common mechanism to elicit risk preferences requires a respondent to
make a series of dichotomous choices. A recurring problem with this
mechanism is a frequently observed tendency to switch from the less to
the more risky choice multiple times, multiple switching behaviour. We
introduce an instructional variation which our evidence suggests
practically eliminates such behaviour. We read a script emphasizing only
one decision will determine earnings before providing written instructions.
Emphasizing the incentive compatibility of the payment rule reduces
observed multiple switching behaviour from 13.3% to 2.3% in one format
and from 25.8% to 6.7% in another.
Multiple Switching Behaviour In Multiple Price Lists
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Created on 3/27/2013
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Additional Information
- Publication
- Bruner, D.M., (2011). Multiple Switching Behaviour in Multiple Price Lists, Applied Economics Letters, 18(5): 417- 420 (March 2011). (ISSN: 1350-4851). [DOI: 10.1080/13504851003724242.] Version Of Record Available At www.tanfonline.com
- Language: English
- Date: 2011