To pay or not to pay: measuring risk preferences in lab and field

Article

Branas Garza, P., Estepa, L., Jorrat, D., Orozco, V. and Rascon Ramirez, E. 2021. To pay or not to pay: measuring risk preferences in lab and field. Judgment and Decision Making. 16 (5), pp. 1290-1313. https://doi.org/10.1017/S1930297500008433
TypeArticle
TitleTo pay or not to pay: measuring risk preferences in lab and field
AuthorsBranas Garza, P., Estepa, L., Jorrat, D., Orozco, V. and Rascon Ramirez, E.
Abstract

Measuring risk preferences using monetary incentives is costly. In the field, it might be also unfair and unsafe. The commonly used measure of Holt and Laury (2002) relies on a dozen lottery choices and payments, which make it time consuming and expensive. It also raises moral concerns as a result of the unequal payments generated by good and bad luck. Paying some but not all subjects may also create tensions between the researcher and subjects. In a pre-registered study in Honduras, Nigeria and Spain, we use a short version of Holt and Laury where we address all three concerns. We find in the field that not paying at all or paying with and without probabilistic rules makes no difference. Our hypothetical and short version makes our measurement of risk cheaper, fairer and safer.

Keywordsrisk preferences; Holt Laury; field experiments; monetary payoffs; incentives
PublisherSociety for Judgment and Decision Making
European Association for Decision Making
JournalJudgment and Decision Making
ISSN1930-2975
Publication dates
Print30 Sep 2021
Publication process dates
Deposited13 Sep 2021
Accepted27 Jun 2021
Output statusPublished
Publisher's version
Accepted author manuscript
File Access Level
Restricted
Copyright Statement

Copyright: © 2021. The authors license this article under the terms of the Creative Commons Attribution 3.0 License

Web address (URL)http://journal.sjdm.org/vol16.5.html
Digital Object Identifier (DOI)https://doi.org/10.1017/S1930297500008433
Web of Science identifierWOS:000701799300007
LanguageEnglish
Permalink -

https://repository.mdx.ac.uk/item/897w2

Log in to edit

Download files

Publisher's version
jdm210614.pdf

  • 126
    total views
  • 54
    total downloads
  • 1
    views this month
  • 0
    downloads this month

Export as

Related outputs

Diffusion of mobile banking among rural women: incentivizing local leaders vs. a marketing campaign
Brañas-Garza, P., Kovářík, J. and Rascón Ramírez, E.G. 2025. Diffusion of mobile banking among rural women: incentivizing local leaders vs. a marketing campaign. Journal of Behavioral and Experimental Finance. 47. https://doi.org/10.1016/j.jbef.2025.101085
Choosing democracy over party? How civic education can mitigate the anti-democratic effects of partisan polarization
Eroglu, M.H., Finkel, S., Neundorf, A., Ozturk, A. and Rascon Ramirez, E. 2025. Choosing democracy over party? How civic education can mitigate the anti-democratic effects of partisan polarization. British Journal of Political Science. 55. https://doi.org/10.1017/S000712342500016X
Question-order effects on judgements under uncertainty
Novella, R. and Rascon Ramirez, E. 2024. Question-order effects on judgements under uncertainty. Journal of Behavioral and Experimental Economics. 109. https://doi.org/10.1016/j.socec.2023.102159
Improving enrollment and learning through videos and mobiles: Experimental evidence from northern Nigeria
Victor, O. and Rascon Ramirez, E. 2023. Improving enrollment and learning through videos and mobiles: Experimental evidence from northern Nigeria. SSRN.
Can online civic education induce democratic citizenship? Experimental evidence from a new democracy
Finkel, S., Neundorf, A. and Rascon Ramirez, E. 2023. Can online civic education induce democratic citizenship? Experimental evidence from a new democracy. American Journal of Political Science. 68 (2), pp. 613-630. https://doi.org/10.1111/ajps.12765
Anchors matter: eliciting maternal expectations on educational outcomes
Branas Garza, P., Ciacci, R. and Rascon Ramirez, E. 2022. Anchors matter: eliciting maternal expectations on educational outcomes. Journal of Economic Psychology. 90. https://doi.org/10.1016/j.joep.2022.102510
Can online civic education induce democratic citizenship? Experimental evidence from a new democracy
Finkel, S., Neundorf, A. and Rascon Ramirez, E. 2021. Can online civic education induce democratic citizenship? Experimental evidence from a new democracy. https://doi.org/10.2139/ssrn.3778600
Anchors matter: eliciting maternal expectations on educational outcomes
Branas Garza, P., Ciacci, R. and Rascon Ramirez, E. 2021. Anchors matter: eliciting maternal expectations on educational outcomes. Munich Personal RePEc Archive.
Cognitive reflection test: whom, how, when
Branas Garza, P., Lenkei, B. and Kujal, P. 2019. Cognitive reflection test: whom, how, when. Journal of Behavioral and Experimental Economics. 82, pp. 1-18.
The appropriate response of Spanish Gitanos: short-run orientation beyond current socio-economic status
Martín, J., Branas Garza, P., Espín, A., Gamella, J. and Herrmann, B. 2019. The appropriate response of Spanish Gitanos: short-run orientation beyond current socio-economic status. Evolution and Human Behavior. 40 (1), pp. 12-22. https://doi.org/10.1016/j.evolhumbehav.2018.07.002
Social networks and citizen election forecasting: the more friends the better
Leiter, D., Murr, A., Rascon Ramirez, E. and Stegmaier, M. 2018. Social networks and citizen election forecasting: the more friends the better. International Journal of Forecasting. 34 (2), pp. 235-248. https://doi.org/10.1016/j.ijforecast.2017.11.006
Gender differences in altruism on Mechanical Turk: expectations and actual behaviour
Branas Garza, P., Capraro, V. and Rascon Ramirez, E. 2018. Gender differences in altruism on Mechanical Turk: expectations and actual behaviour. Economics Letters. 170, pp. 19-23. https://doi.org/10.1016/j.econlet.2018.05.022
Experimental and self-reported measures of risk taking and digit ratio (2D:4D): evidence from a large, systematic study
Branas Garza, P., Galizzi, M. and Nieboer, J. 2018. Experimental and self-reported measures of risk taking and digit ratio (2D:4D): evidence from a large, systematic study. International Economic Review. 59 (3), pp. 1131-1157. https://doi.org/10.1111/iere.12299
The emergence of altruism as a social norm
Pereda, M., Branas Garza, P., Rodriguez-Lara, I. and Sanchez, A. 2017. The emergence of altruism as a social norm. Scientific Reports. 7. https://doi.org/10.1038/s41598-017-07712-9
Exposición fetal a la testosterona, D2:D4 y altruismo estratégico
Branas Garza, P. 2017. Exposición fetal a la testosterona, D2:D4 y altruismo estratégico. Revista de Economia Industrial. 403, pp. 103-110.
Registered Replication Report: Rand, Greene & Nowak (2012)
Bouwmeester, S., Verkoeijen, P., Acze, B., Barbosa, F., Bègue, L., Branas Garza, P., Chmura, T., Cornelissen, G., Døssing, F., Espín, A., Evans, A., Ferreira-Santos, F., Fiedler, S., Flegr, J., Ghaffari, M., Glöckner, A., Goeschl, T., Guo, L., Hauser, O., Hernan-Gonzalez, R., Herrero, A., Horne, Z., Houdek, P., Johannesson, M., Koppel, L., Kujal, P., Laine, T., Lohse, J., Martins, E., Mauro, C., Mischkowski, D., Mukherjee, S., Myrseth, K., Navarro-Martínez, D., Neal, T., Novakova, J., Pagà, R., Paiva, T., Palf, B., Piovesan, M., Rahal, R., Salomon, E., Srinivasan, N., Srivastava, A., Szaszi, B., Szollosi, A., Thor, K., Tinghög, G., Trueblood, J., Van Bavel, J., van 't Veer, A., Västfjäll, D., Warner, M., Wengström, E., Wills, J. and Wollbrant, C. 2017. Registered Replication Report: Rand, Greene & Nowak (2012). Perspectives on Psychological Science. 12 (3), pp. 527-542. https://doi.org/10.1177/1745691617693624
Eliciting real-life social networks: a guided tour
Branas Garza, P., Jimenez Jimenez, N. and Ponti, G. 2017. Eliciting real-life social networks: a guided tour. Journal of Behavioral Economics for Policy. 1 (1), pp. 33-39.
Digit ratio (2D:4D) and social integration: an effect of prenatal sex hormones
Kovářík, J., Branas Garza, P., Davidson, M., Haim, D., Carcelli, S. and Fowler, J. 2017. Digit ratio (2D:4D) and social integration: an effect of prenatal sex hormones. Network Science. 5 (4), pp. 476-489. https://doi.org/10.1017/nws.2017.4
Humans expect generosity
Branas Garza, P., Rodriguez-Lara, I. and Sanchez, A. 2017. Humans expect generosity. Scientific Reports. 7. https://doi.org/10.1038/srep42446
Strategic risk and response time across games
Branas Garza, P., Meloso, D. and Miller, L. 2017. Strategic risk and response time across games. International Journal of Game Theory. 46 (2), pp. 511-523. https://doi.org/10.1007/s00182-016-0541-y
Editorial: Prosocial and antisocial behavior in economic games
Branas Garza, P., Espín, A., Herrmann, B., Kujal, P. and Nagel, R. 2016. Editorial: Prosocial and antisocial behavior in economic games. Frontiers in Behavioral Neuroscience. 10. https://doi.org/10.3389/fnbeh.2016.00243
Self-identified obese people request less money: a field experiment
Proestakis, A. and Branas Garza, P. 2016. Self-identified obese people request less money: a field experiment. Frontiers in Psychology. 7. https://doi.org/10.3389/fpsyg.2016.01454
Cognitive abilities and economic behavior
Branas-Garza, P. and Branas Garza, P. 2016. Cognitive abilities and economic behavior. Journal of Behavioral and Experimental Economics. 64, pp. 1-4. https://doi.org/10.1016/j.socec.2016.06.005
BMI is not related to altruism, fairness, trust or reciprocity: experimental evidence from the field and the lab
Branas Garza, P., Espín, A. and Lenkei, B. 2016. BMI is not related to altruism, fairness, trust or reciprocity: experimental evidence from the field and the lab. Physiology & Behavior. 156, pp. 79-93. https://doi.org/10.1016/j.physbeh.2016.01.008
Short- and long-run goals in ultimatum bargaining: impatience predicts spite-based behavior
Espín, A., Exadaktylos, F., Herrmann, B. and Branas Garza, P. 2015. Short- and long-run goals in ultimatum bargaining: impatience predicts spite-based behavior. Frontiers in Behavioral Neuroscience. 9. https://doi.org/10.3389/fnbeh.2015.00214
Strategy method (and payment cards)
Branas Garza, P. and Georgantzis, N. 2015. Strategy method (and payment cards). in: Morris, A. (ed.) Real World Decision Making: An Encyclopedia of Behavioral Economics Santa Barbara, CA ABC-Clio. pp. 421-422
Public good games
Branas Garza, P. 2015. Public good games. in: Morris, A. (ed.) Real World Decision Making: An Encyclopedia of Behavioral Economics Santa Barbara, CA ABC-Clio. pp. 347-350
Context-dependent cheating: experimental evidence from 16 countries
Pascual-Ezama, D., Fosgaard, T., Cardenas, J., Kujal, P., Veszteg, R., Gil-Gómez de Liaño, B., Gunia, B., Weichselbaumer, D., Hilken, K., Armenak, A., Delnoij, J., Proestakis, A., Tira, M., Patromo, Y., Jaber-López, T. and Branas Garza, P. 2015. Context-dependent cheating: experimental evidence from 16 countries. Journal of Economic Behavior & Organization. 116, pp. 379-386. https://doi.org/10.1016/j.jebo.2015.04.020
Strategic behaviour in Schelling dynamics: theory and experimental evidence
Benito-Ostolaza, J., Branas Garza, P., Hernández, P. and Sanchis-Llopis, J. 2015. Strategic behaviour in Schelling dynamics: theory and experimental evidence. Journal of Behavioral and Experimental Economics. 57, pp. 134-147. https://doi.org/10.1016/j.socec.2015.05.007
Religious pro-sociality? Experimental evidence from a sample of 766 Spaniards
Branas Garza, P., Espín, A. and Neuman, S. 2014. Religious pro-sociality? Experimental evidence from a sample of 766 Spaniards. PLoS ONE. 9 (8), pp. 1-11. https://doi.org/10.1371/journal.pone.0104685
Fair and unfair punishers coexist in the Ultimatum Game
Branas Garza, P., Espín, A., Exadaktylos, F. and Herrmann, B. 2014. Fair and unfair punishers coexist in the Ultimatum Game. Scientific Reports. 4 (6025). https://doi.org/10.1038/srep06025
Can exposure to prenatal sex hormones (2D:4D) predict cognitive reflection?
Bosch-Doménech, A., Branas Garza, P. and Espín, A. 2014. Can exposure to prenatal sex hormones (2D:4D) predict cognitive reflection? Psychoneuroendocrinology. 43, pp. 1-10. https://doi.org/10.1016/j.psyneuen.2014.01.023
Moral cleansing and moral licenses: experimental evidence
Branas Garza, P., Bucheli, M., Espinosa, M. and García-Muñoz, T. 2013. Moral cleansing and moral licenses: experimental evidence. Economics and Philosophy. 29 (2), pp. 199-212. https://doi.org/10.1017/S0266267113000199
Second-to-fourth digit ratio has a non-monotonic impact on altruism
Branas Garza, P., Kovářík, J. and Neyse, L. 2013. Second-to-fourth digit ratio has a non-monotonic impact on altruism. PLoS ONE. 8 (4), pp. 1-10. https://doi.org/10.1371/journal.pone.0060419
Determinants of disaffiliation: an international study
Branas Garza, P., García-Muñoz, T. and Neuman, S. 2013. Determinants of disaffiliation: an international study. Religions. 4 (1), pp. 166-185. https://doi.org/10.3390/rel4010166
Experimental subjects are not different
Exadaktylos, F., Espín, A. and Branas Garza, P. 2013. Experimental subjects are not different. Scientific Reports. 3 (1213), pp. 1-6. https://doi.org/10.1038/srep01213
Prosocial norms and degree heterogeneity in social networks
Kovářík, J., Branas Garza, P., Cobo-Reyes, R., Espinosa, M., Jimenez Jimenez, N. and Ponti, G. 2012. Prosocial norms and degree heterogeneity in social networks. Physica A: Statistical Mechanics and its Applications. 391 (3), pp. 849-853. https://doi.org/10.1016/j.physa.2011.08.040
Time discounting and pain anticipation: experimental evidence
Branas Garza, P., Espinosa, M. and Repollés, M. 2012. Time discounting and pain anticipation: experimental evidence. Revista Internacional de Sociología (RIS). 70 (Extra1), pp. 73-81. https://doi.org/10.3989/ris.2011.04.1A
Patient and impatient punishers of free-riders
Espín, A., Branas Garza, P., Herrmann, B. and Gamella, J. 2012. Patient and impatient punishers of free-riders. Proceedings of the Royal Society B: Biological Sciences. 279 (1749), pp. 4923-4928. https://doi.org/10.1098/rspb.2012.2043
Cognitive effort in the beauty contest game
Branas Garza, P., García-Muñoz, T. and Hernán-González, R. 2012. Cognitive effort in the beauty contest game. Journal of Economic Behavior & Organization. 83 (2), pp. 254-260. https://doi.org/10.1016/j.jebo.2012.05.018
Travelers’ types
Branas Garza, P., Espinosa, M. and Rey-Biel, P. 2011. Travelers’ types. Journal of Economic Behavior & Organization. 78 (1-2), pp. 25-36. https://doi.org/10.1016/j.jebo.2010.12.005
Economia Experimental y del Comportamiento
Branas Garza, P. Bosch, A. (ed.) 2011. Economia Experimental y del Comportamiento. Antoni Bosch.
Intergenerational transmission of ‘religious capital’. Evidence from Spain
Branas Garza, P., García-Muñoz, T. and Neuman, S. 2011. Intergenerational transmission of ‘religious capital’. Evidence from Spain. Revista Internacional de Sociologia (RIS). 69 (3), pp. 649-677. https://doi.org/10.3989/ris.2010.06.28
Sequential versus simultaneous schelling models: experimental evidence
Benito, J., Branas Garza, P., Hernández, P. and Sanchis, J. 2011. Sequential versus simultaneous schelling models: experimental evidence. Journal of Conflict Resolution. 55 (1), pp. 60-84. https://doi.org/10.1177/0022002710374714
Favouring friends
Branas Garza, P., Durán, M. and Espinosa, M. 2011. Favouring friends. Bulletin of Economic Research. 64 (2), pp. 172-178. https://doi.org/10.1111/j.1467-8586.2010.00357.x
Unraveling public good games
Branas Garza, P. and Espinosa, M. 2011. Unraveling public good games. Games. 2 (4), pp. 434-451. https://doi.org/10.3390/g2040434
Organizing effects of testosterone and economic behavior: not just risk taking
Branas Garza, P. and Rustichini, A. 2011. Organizing effects of testosterone and economic behavior: not just risk taking. PLoS ONE. 6 (12), pp. 1-8. https://doi.org/10.1371/journal.pone.0029842
Sensibilidad, resistencia y expresión del dolor: relación con la socialización del dolor
Branas Garza, P. and Repollés, M. 2010. Sensibilidad, resistencia y expresión del dolor: relación con la socialización del dolor. Revista de la Sociedad Espanola del Dolor. 17 (7), pp. 304-311. https://doi.org/10.1016/j.resed.2010.07.003
Personal identity: a theoretical and experimental analysis
Aguiar, F., Branas Garza, P., Espinosa, M. and Miller, L. 2010. Personal identity: a theoretical and experimental analysis. Journal of Economic Methodology. 17 (3), pp. 261-275. https://doi.org/10.1080/13501781003792670
Religious favoritism in Europe: a political competition model
Branas Garza, P. and Solano García, Á. 2010. Religious favoritism in Europe: a political competition model. Rationality and Society. 22 (3), pp. 333-352. https://doi.org/10.1177/1043463110374498
Discounting future pain: effects on self-reported pain
Branas Garza, P., Espinosa, M. and Repollés, M. 2010. Discounting future pain: effects on self-reported pain. Neuroscience and Medicine. 1 (1), pp. 14-19. https://doi.org/10.4236/nm.2010.11002
The big carrot: high-stakes incentives revisited
Branas Garza, P., García-Muñoz, T. and Neuman, S. 2010. The big carrot: high-stakes incentives revisited. Journal of Behavioral Decision Making. 23 (3), pp. 288-313. https://doi.org/10.1002/bdm.657
Inducing efficient conditional cooperation patterns in public goods games, an experimental investigation
Guillen, P., Fatas, E. and Branas Garza, P. 2010. Inducing efficient conditional cooperation patterns in public goods games, an experimental investigation. Journal of Economic Behavior & Organization. 31 (6), pp. 872-883. https://doi.org/10.1016/j.joep.2010.07.002
Altruism and social integration
Branas Garza, P., Cobo-Reyes, R., Espinosa, M., Jimenez Jimenez, N., Kovářík, J. and Ponti, G. 2010. Altruism and social integration. Games and Economic Behavior. 69 (10), pp. 249-257. https://doi.org/10.1016/j.geb.2009.10.014
Preferencias sobre los demás
Branas Garza, P. and Jimenez Jimenez, N. 2009. Preferencias sobre los demás. in: Garcia-Bermejo, J. (ed.) Sobre la Economía y sus métodos. Enciclopedia Iberoamericana de Filosofía Madrid Editorial Trotta.
Are women expected to be more generous?
Aguiar, F., Branas Garza, P., Cobo-Reyes, R., Jimenez Jimenez, N. and Miller, L. 2009. Are women expected to be more generous? Experimental Economics: A Journal of the Economic Science Association. 12 (1), pp. 93-98. https://doi.org/10.1007/s10683-008-9199-z
Aproximaciones experimentales a la fecilidad
Ateca Amestoy, V., Ballester Pla, C. and Branas Garza, P. 2009. Aproximaciones experimentales a la fecilidad. Cuadernos Economicos del ICE. 77, pp. 183-197.
Expectativas sobre comportamiento egoista
Branas Garza, P., Espinosa, M. and García-Muñoz, T. 2009. Expectativas sobre comportamiento egoista. Cuadernos Econimicos del ICE. 77, pp. 33-43.
The role of personal involvement and responsibility in unfair outcomes: a classroom investigation
Branas Garza, P., Durán, M. and Espinosa, M. 2009. The role of personal involvement and responsibility in unfair outcomes: a classroom investigation. Rationality and Society. 21 (2), pp. 225-248. https://doi.org/10.1177/1043463109103900
Individual’s religiosity enhances trust: Latin American evidence for the puzzle
Branas Garza, P., Rossi, M. and Dayna, Z. 2009. Individual’s religiosity enhances trust: Latin American evidence for the puzzle. Journal of Money, Credit and Banking. 41 (2-3), pp. 555-566. https://doi.org/10.1111/j.1538-4616.2009.00222.x
Secularization and fertility: evidence from Spain
Branas Garza, P. and Neuman, S. 2008. Secularization and fertility: evidence from Spain. in: Gordeev, P. (ed.) Demographic Economics Research Perspectives Nova Science Publishers. pp. 43-74
Moral distance in dictator games
Aguiar, F., Branas Garza, P. and Miller, L. 2008. Moral distance in dictator games. Judgment and Decision Making. 3 (4), pp. 344-354.
Math skills and risk attitudes
Branas Garza, P., Guillen, P. and López del Paso, R. 2008. Math skills and risk attitudes. Economics Letters. 99 (2), pp. 332-336. https://doi.org/10.1016/j.econlet.2007.08.008