Payoff and presentation modulation of elicited risk preferences in MPLs
Sameh Habib, Daniel Friedman, Sean Crockett, Duncan James · Journal of the Economic Science Association · 2017
Abstract Since Holt and Laury (Am Econ Rev 92(5):1644–1655, 2002), the multiple price list (MPL) procedure has widely been used to elicit individual risk preferences. We assess the impact of varying list order and spacing, and of presentation via text or graphs. Relative to the original MPL baseline, some non-linear transformations of lottery prices systematically increase elicited risk aversion, while some graphical displays tend to reduce it.