Revalidating a survey instrument for measuring risk preferences

2024/07/22 by Heinrich, Timo, Haering, Alexander, Mayrhofer, Thomas +1
#Experiment #Risk preferences #Social Sciences::330: Economics #Survey validation

paper · doi:10.15480/882.13160

Abstract

Survey instruments are often a cost-effective alternative to eliciting preferences via incentivized experiments. We revalidate a survey instrument used for measuring risk preferences in the influential Global Preferences Survey. We find that the instrument consisting of a quantitative and a qualitative item predicts risk aversion in a Chinese, an American and a German sample. For out-of-sample predictions, the combination of both items is preferable compared to using only one of the two items.

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