Consistency of Risk Preference Measures: An Artefactual Field Experiment from Rural China

A variety of measures have been developed to elicit individual risk preferences. How these measures perform in the field, in particular in developing countries with non-student subjects, is still an open question. We implement an artefactual field experiment in rural China to investigate (i) consist...

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Bibliographic Details
Published in:The Journal of development studies 2018-11, Vol.54 (11), p.1955-1973
Main Authors: He, Pan, Veronesi, Marcella, Engel, Stefanie
Format: Article
Language:English
Subjects:
Ambiguity
Developing countries
Elicitation
Inconsistency
LDCs
Polls & surveys
Preferences
Risk
Risk aversion
Risk preferences
Rural areas
Rural communities
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Summary:A variety of measures have been developed to elicit individual risk preferences. How these measures perform in the field, in particular in developing countries with non-student subjects, is still an open question. We implement an artefactual field experiment in rural China to investigate (i) consistency across incentivised experimental risk measures, (ii) consistency in risk preferences elicitation between non-incentivised survey measures and incentivised experiments, and (iii) possible explanations for risk preference inconsistency across measures. We find that inconsistent risk preferences across survey and experimental measures may be explained by ambiguity preferences. In the survey, subjects may mix risk and ambiguity preferences.
ISSN:0022-0388
1743-9140
DOI:10.1080/00220388.2017.1336542