Asymmetrically dominated alternatives and random incentive mechanisms

Bibliographic Details
Authors and Corporations: Schmidt, Ulrich
Title: Asymmetrically dominated alternatives and random incentive mechanisms
published:
Kiel Institute for the World Economy (IfW) Kiel, 2010
Summary:This note presents an experimental study of the random lottery incentive mechanism. In the baseline treatment we observe risk behavior in a given choice problem. We show 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.
Type of Resource:E-Article
Source:EconStor (German National Library of Economics, ZBW)
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Language: English