Belief elicitation in experiments: is there a hedging problem?

0351609 - NHÚ 2011 RIV NL eng J - Journal Article
Blanco, M. - Engelmann, Dirk - Koch, A. K. - Normann, H.-T.
Belief elicitation in experiments: is there a hedging problem?
Experimental Economics. Roč. 13, č. 4 (2010), s. 412-438. ISSN 1386-4157. E-ISSN 1573-6938
Institutional research plan: CEZ:AV0Z70850503
Keywords : belief elicitation * hedging * experimental methodology
Subject RIV: AH - Economics
Impact factor: 1.868, year: 2010

Belief-elicitation experiments usually reward accuracy of stated beliefs in addition to payments for other decisions. But this allows risk-averse subjects to hedge with their stated beliefs against adverse outcomes of the other decisions. So can we trust the existing belief-elicitation results? And can we avoid potential hedging confounds? We propose an experimental design that theoretically eliminates hedging opportunities. Using this design, we test for the empirical relevance of hedging effects in the lab.
Permanent Link: http://hdl.handle.net/11104/0191323