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

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...

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Bibliographic Details
Published inJournal of economic psychology Vol. 104; p. 102757
Main Authors Aydogan, Ilke, Berger, Loïc, Théroude, Vincent
Format Journal Article
LanguageEnglish
Published Elsevier B.V 01.10.2024
Elsevier
Subjects
Ambiguity elicitation
Economics and Finance
Experimental methodology
Humanities and Social Sciences
Incentives
Payment methods
Payment methods
Incentives
C90
D81
Experimental methodology
Ambiguity elicitation
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Summary: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.
ISSN:0167-4870
DOI:10.1016/j.joep.2024.102757