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This program sets up an individual decision-making task
in which each person is presented with a price list for which the crossover
point determines a money value (certainty equivalent)
for a risky prospect. Alternatively, the program can be used to elicit money
values for a physical object specified by the experimenter, or even for a money
payment at a specified future date, which can indicate time preference.
| | | | | | The available certainty equivalent values are provided in a structured choice menu that can be set to
provide a second stage choice on a fine grid. Precise crossovers are especially useful in eliciting present and future values. An alternative approach is to use a choice menu
with a fixed money amount on one side of each row and risky prospects with
increasing probabilities of the high payoff on the other side, so that
the crossover provides a "probability equivalent" to the fixed money payoff, which can be used
to make inferences about risk preference (Murnighan, Roth and Schoumaker, 1988). There is also a setup option presents subjects with a set of alternative investment portfolios with increasing spreads between high and low payoffs, which can be used to infer risk aversion (e.g., Eckel and Grossman, 2002). |
Vecon Lab - November 22, 2024 |