Internal and External Validity:Comparing Two Simple Risk Elicitation Tasks

Dasgupta, Utteeyo and Mani, Subha and Sharma, Smriti and Singhal, Saurabh (2019) Internal and External Validity:Comparing Two Simple Risk Elicitation Tasks. Journal of Behavioral and Experimental Economics, 81. pp. 39-46. ISSN 2214-8043

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Abstract

Researchers often need to elicit risk attitudes in field experiments or in laboratory experiments. However, choosing a risk elicitation task can be a source of concern, as risk attitudes have been often shown to vary dramatically across tasks. Using a large sample of approximately 2,000 subjects in a within-subjects design, we compare behavior in two commonly used incentivized risk elicitation tasks – the investment game and the ordered lottery choice game – recognized for their simplicity and ease of implementation. We find that risk attitudes elicited from the two tasks show considerable internal consistency, and importantly, have similar predictive validity for behavior in a different task with built-in uncertainty. We also explore determinants of inconsistency between the two risk tasks.

Item Type: Journal Article
Journal or Publication Title: Journal of Behavioral and Experimental Economics
Additional Information: This is the author’s version of a work that was accepted for publication in Journal of Behavioral and Experimental Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Behavioral and Experimental Economics, 81, 2019 DOI: 10.1016/j.socec.2019.05.005
Uncontrolled Keywords: /dk/atira/pure/subjectarea/asjc/3200/3202
Subjects:
Departments: Lancaster University Management School > Economics
ID Code: 133911
Deposited By: ep_importer_pure
Deposited On: 22 May 2019 12:35
Refereed?: Yes
Published?: Published
Last Modified: 19 Feb 2020 05:25
URI: https://eprints.lancs.ac.uk/id/eprint/133911

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