Experimental Elicitation of Ambiguity Attitude Using the Random Incentive System
نویسندگان
چکیده
We demonstrate how the standard usage of the random incentive system in ambiguity experiments is not incentive compatible if the decision maker is ambiguity averse. We propose a slight modification of the procedure in which the randomization takes place before decisions are made and the state is realized and prove that if subjects evaluate the experimental environment in that way (first risk, second uncertainty), incentive compatibility may be restored.
منابع مشابه
Independent Randomization Devices and the Elicitation of Ambiguity Averse Preferences
Random incentive mechanisms are an important tool of experimental economics. According to such mechanisms subjects are asked to choose from a variety of problems, but are paid according to only one randomly drawn problem. I show that subjects’ choices in random incentive mechanisms and single choice experiments are identical if they view the randomization device that determines the choice probl...
متن کاملRandomization devices and the elicitation of ambiguity-averse preferences
In random incentive mechanisms agents choose from multiple problems and a randomization device selects a single problem to determine payment. Agents are assumed to act as if they faced each problem on its own. While this approach is valid when agents are expected utility maximizers, ambiguity-averse agents may use the randomization device to hedge and thereby contaminate the data.
متن کاملAmbiguity Attitudes: An Experimental Investigation
This paper reports the results of experiments designed to test (a) whether and to what extent individuals display non-neutral ambiguity attitudes in their choice behavior and (b) if and how do ambiguity attitudes change as a result of interpersonal interactions and persuation. To address the first question we designed and conducted experiments involving individual choice between betting on ambi...
متن کاملElicitation Strategies for Web Application Using Activity Theory
Requirements engineering (RE) is often seen as an essential facet in software development. It is a vital process before each project starts. In the context of systems engineering, an understanding and application of systems theory and practice is also relevant to RE. The contexts in which RE takes place habitually involve human activities. Therefore, RE needs to be sensitive to how people perce...
متن کاملElicitation Strategies for Web Application Using Activity Theory
Requirements engineering (RE) is often seen as an essential facet in software development. It is a vital process before each project starts. In the context of systems engineering, an understanding and application of systems theory and practice is also relevant to RE. The contexts in which RE takes place habitually involve human activities. Therefore, RE needs to be sensitive to how people perce...
متن کامل