Publication
Aug 2010
This note presents an experimental study of the random lottery incentive mechanism. In the baseline treatment it observes risk behavior in a given choice problem. It shows that by integrating a second, asymmetrically dominated choice problem in a random incentive mechanism risk behavior can be manipulated systematically. This implies that the isolation hypothesis is violated the random incentive mechanism does not elicit true preferences.
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English (PDF, 7 pages, 694 KB) |
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Author | Ulrich Schmidt |
Series | Kiel Institute Working Papers |
Issue | 1646 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2010 Kiel Institute for the World Economy |