Department of Economics
In the past decade, it has become common to use simple laboratory games and decision tasks as a device for measuring risk preferences in the developing world. In this paper, we build on existing taxonomies for risk elicitation and discuss pros and cons of using such methods in developing-country contexts. We use three distinct risk-elicitation mechanisms (the Holt-Laury task, the Gneezy-Potters mechanism, and a non-incentivized willingness-to-risk scale) and subjects from rural Senegal. Our study provides some guidance to researchers wishing to use risk-elicitation mechanisms in the rural developing world.
Charness, Gary and Viceisza, Angelino, "Three Risk-elicitation Methods in the Field: Evidence from Rural Senegal" (2015). Spelman College Faculty Publications. 4.
Review of Behavioral Economics