The effect of domain and framing on elicited risk aversion.

The effect of domain and framing on elicited risk aversion.

Blog Article

Experimental literature has found that risk attitudes are not robust to different elicitation techniques.However, Baseball Bat most comparisons across elicitation methods involve different rewards and framings simultaneously.Our experimental design helps to disentangle the effect of these two factors.We consider two different personal rewards (money Travel Supplies domain and grade domain) and two different scenarios while keeping the reward constant (lottery framing and exam framing).We find no differences in elicited risk aversion between the two domains.

However, framing matters: elicited risk aversion is lower in the exam framing.