A Comparison of Survey and Incentivized-Based Risk Attitude Elicitation /

We find that the response to the risk questions in the survey are highly correlated, as are the responses to the loss questions. [...] The table divides the questions into the two categories of risk and loss, summarizes the topic each question covers, and presents the abbreviation we will use to describe each question in this paper. [...] Intuitively, prudence is the aversion to an increase in the probability of facing a downside risk, while keeping unchanged the mean and variance of the distribution. [...] Notice that the lotteries in Table 5 are constructed from the payoffs in the risk preference elicitation instrument of Table 2. Notice also that these lotteries represent the extent to which participants are willing to pay to avoid lack of knowledge of the probabilities of the lottery outcomes. [...] The choice is made, the lottery is implemented, the return is computed and added to the cash for a total payoff for the period.