Pay all subjects or pay only some? An experiment on decision-making under risk and ambiguity

Bibliographic Data

ID11288912
AuthorsIlke Aydogan (0000-0001-6087-2204, Centre National de la Recherche Scientifique), Loïc Berger (0000-0002-0696-9387, Centre National de la Recherche Scientifique, corresponding author), Vincent Théroude (Centre National de la Recherche Scientifique)
Year2024
Volume104
Pages102757
Publication date2024-10-01
Open AccessYes
TypeARTICLE
VenueJournal of Economic Psychology (JOURNAL)
Journal identifiersISSN: 0167-4870 • E-ISSN: 1872-7719
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.joep.2024.102757
OpenAlexW4401489994
LanguageEN
Citations received4
References cited32

We investigate the validity of a double random incentive system where only a subset of subjects is paid for one of their choices. By focusing on individual decision-making under risk and ambiguity, we show that using either a standard random incentive system, where all subjects are paid, or a double random system, where only 10% of subjects are paid, yields similar preference elicitation results. These findings suggest that adopting a double random incentive system could significantly reduce experimental costs and logistic efforts, thereby facilitating the exploration of individual decision-making in larger-scale and higher-stakes experiments

Actuarial science · Ambiguity · Economics · Microeconomics · Willingness to pay · Computer Science · Decision-Making and Behavioral Economics · Economic and Environmental Valuation · Experimental Behavioral Economics Studies · Psychology · Social Psychology

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