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Elicitation using multiple price list formats

Published online by Cambridge University Press:  14 March 2025

Steffen Andersen ,
Glenn W. Harrison ,
Morten Igel Lau  and
E. Elisabet Rutström
Steffen Andersen*
Affiliation:
Centre for Economic and Business Research, Copenhagen Business School, Copenhagen, Denmark
Glenn W. Harrison*
Affiliation:
Department of Economics, College of Business Administration, University of Central Florida, USA
Morten Igel Lau*
Affiliation:
Department of Economics and Finance, Durham Business School, Durham University, United Kingdom
E. Elisabet Rutström
Affiliation:
Department of Economics, College of Business Administration, University of Central Florida, USA
*
e-mail: [email protected]
e-mail: [email protected]; [email protected]
e-mail: [email protected]
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Abstract

We examine the properties of a popular method for eliciting choices and values from experimental subjects, the multiple price list format. The main advantage of this format is that it is relatively transparent to subjects and provides simple incentives for truthful revelation. The main disadvantages are that it only elicits interval responses, and could be susceptible to framing effects. We consider extensions to address and evaluate these concerns. We conclude that although there are framing effects, they can be controlled for with a design that allows for them. We also find that the elicitation of risk attitudes is sensitive to procedures, subject pools, and the format of the multiple price list table, but that the qualitative findings that participants are generally risk averse is robust. The elicitation of discount rates appear less sensitive to details of the experimental design.

Keywords

ElicitationExperimentsRisk aversionDiscount rates

JEL classification

C9: Design of Experiments D81: Criteria for Decision-Making under Risk and Uncertainty D91: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Type
Research Article
Information
Experimental Economics , Volume 9 , Issue 4 , December 2006 , pp. 383 - 405
Copyright
Copyright © 2006 Economic Science Association

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Footnotes

Electronic Supplementary Material Supplementary material is available in the online version of this article at http://dx.doi.org/10.1007/s10683-006-7055-6.

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