IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v26y2019i1p58-63.html
   My bibliography  Save this article

Multiple switching behaviour in different display formats of multiple price lists

Author

Listed:
  • Golo-Friedrich Bauermeister
  • Oliver Mußhoff

Abstract

A common approach to elicit risk attitude is the multiple price list with a series of binary choices. However, a frequently observed problem when using multiple price lists is that participants switch more than once from the safer to the riskier option, thus exhibiting multiple switching behaviour. The present study analyses whether the visualization of different multiple price lists reduce multiple switching behaviour. Therefore, we conduct two types of multiple price lists in two different display formats. Participants are randomly assigned into a textual or a visual group and carry out both multiple price lists in the corresponding display format. Our results reveal that different types of multiple price lists lead to differences in the extent of multiple switching behaviour. Moreover, we show that the visualization of a multiple price list can be an instrument to greatly reduce multiple switching behaviour.

Suggested Citation

  • Golo-Friedrich Bauermeister & Oliver Mußhoff, 2019. "Multiple switching behaviour in different display formats of multiple price lists," Applied Economics Letters, Taylor & Francis Journals, vol. 26(1), pages 58-63, January.
    • Handle: RePEc:taf:apeclt:v:26:y:2019:i:1:p:58-63
    DOI: 10.1080/13504851.2018.1438577
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2018.1438577
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2018.1438577?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. David Bruner, 2011. "Multiple switching behaviour in multiple price lists," Applied Economics Letters, Taylor & Francis Journals, vol. 18(5), pages 417-420.
    2. Louis Lévy-Garboua & Hela Maafi & David Masclet & Antoine Terracol, 2012. "Risk aversion and framing effects," Experimental Economics, Springer;Economic Science Association, vol. 15(1), pages 128-144, March.
    3. Charness, Gary & Viceisza, Angelino, 2016. "Three Risk-elicitation Methods in the Field - Evidence from Rural Senegal," Review of Behavioral Economics, now publishers, vol. 3(2), pages 145-171, July.
    4. de Brauw, Alan & Eozenou, Patrick, 2014. "Measuring risk attitudes among Mozambican farmers," Journal of Development Economics, Elsevier, vol. 111(C), pages 61-74.
    5. Mußhoff, Oliver & Tegtmeier, André & Hirschauer, Norbert, 2012. "Attraktivität einer landwirtschaftlichen Tätigkeit: Einflussfaktoren und Gestaltungsmöglichkeiten," DARE Discussion Papers 1213, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    6. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Jürgen Schupp & Gert G. Wagner, 2011. "Individual Risk Attitudes: Measurement, Determinants, And Behavioral Consequences," Journal of the European Economic Association, European Economic Association, vol. 9(3), pages 522-550, June.
    7. Fellner, Gerlinde & Maciejovsky, Boris, 2007. "Risk attitude and market behavior: Evidence from experimental asset markets," Journal of Economic Psychology, Elsevier, vol. 28(3), pages 338-350, June.
    8. Schneider, Thea & Hartmann, Laura & Spiller, Achim, 2015. "Luxusmarketing bei Lebensmitteln: Eine empirische Studie zu Dimensionen des Luxuskonsums in Deutschland," DARE Discussion Papers 1502, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    9. Arnaud Reynaud & Stéphane Couture, 2012. "Stability of risk preference measures: results from a field experiment on French farmers," Theory and Decision, Springer, vol. 73(2), pages 203-221, August.
    10. García-Germán, Sol & Romeo, Alessandro & Magrini, Emiliano & Balié, Jean, 2016. "The impact of food price shocks on weight loss: Evidence from the adult population of Tanzania," DARE Discussion Papers 1611, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    11. Cary Deck & Jungmin Lee & Javier Reyes, 2014. "Investing versus gambling: experimental evidence of multi-domain risk attitudes," Applied Economics Letters, Taylor & Francis Journals, vol. 21(1), pages 19-23, January.
    12. Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
    13. Norbert Hirschauer & Oliver Musshoff & Syster C. Maart-Noelck & Sven Gruener, 2014. "Eliciting risk attitudes -- how to avoid mean and variance bias in Holt-and-Laury lotteries," Applied Economics Letters, Taylor & Francis Journals, vol. 21(1), pages 35-38, January.
    14. Beetsma, Roel M W J & Schotman, Peter C, 2001. "Measuring Risk Attitudes in a Natural Experiment: Data from the Television Game Show Lingo," Economic Journal, Royal Economic Society, vol. 111(474), pages 821-848, October.
    15. Mohammed Abdellaoui & Ahmed Driouchi & Olivier L’Haridon, 2011. "Risk aversion elicitation: reconciling tractability and bias minimization," Theory and Decision, Springer, vol. 71(1), pages 63-80, July.
    16. Amy Purvis & William G. Boggess & Charles B. Moss & John Holt, 1995. "Technology Adoption Decisions under Irreversibility and Uncertainty: An Ex Ante Appproach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 541-551.
    17. Jochen Meyer & Stephan von Cramon‐Taubadel, 2004. "Asymmetric Price Transmission: A Survey," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(3), pages 581-611, November.
    18. Prasad, Kislaya & Salmon, Timothy C., 2013. "Self Selection and market power in risk sharing contracts," Journal of Economic Behavior & Organization, Elsevier, vol. 90(C), pages 71-86.
    19. Tangermann, Stefan & von Cramon-Taubadel, Stephan, 2013. "Agricultural policy in the European Union: An overview," DARE Discussion Papers 1302, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    20. Heß, Sebastian & Bergmann, Holger & Sudmann, Lüder, 2006. "Die Förderung alternativer Energien - eine kritische Bestandsaufnahme," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187446, German Association of Agricultural Economists (GEWISOLA).
    21. repec:hal:pseose:hal-00617673 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marco Santorsola & Rocco Caferra & Andrea Morone, 2023. "The salience of informed risk: an experimental analysis," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 51(9), pages 21-35, June.
    2. Segovia, Michelle & Palma, Marco & Lusk, Jayson L. & Drichoutis, Andreas, 2022. "Visual formats in risk preference elicitation: What catches the eye?," MPRA Paper 115572, University Library of Munich, Germany.
    3. Luca Congiu, 2023. "Framing Effects in the Elicitation of Risk Aversion: An Experimental Study," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(1), pages 321-352, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ihli, Hanna Julia & Chiputwa, Brian & Musshoff, Oliver, 2016. "Do Changing Probabilities or Payoffs in Lottery-Choice Experiments Affect Risk Preference Outcomes? Evidence from Rural Uganda," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(2), May.
    2. Bauermeister, Golo-Friedrich & Mußhoff, Oliver, 2016. "Risk Attitude And Inconsistencies - Does The Choice Of Display Format And Risk Elicitation Method Influence The Outcomes?," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244764, German Association of Agricultural Economists (GEWISOLA).
    3. Segovia, Michelle & Palma, Marco & Lusk, Jayson L. & Drichoutis, Andreas, 2022. "Visual formats in risk preference elicitation: What catches the eye?," MPRA Paper 115572, University Library of Munich, Germany.
    4. Meraner, Manuela & Musshoff, Oliver & Finger, Robert, 2018. "Using involvement to reduce inconsistencies in risk preference elicitation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 73(C), pages 22-33.
    5. Bauermeister, Golo & Musshoff, Oliver, 2016. "Risk Aversion and Inconsistencies - Does the Choice of Risk Elicitation Method and Display Format Influence the Outcomes?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235348, Agricultural and Applied Economics Association.
    6. Tamás Csermely & Alexander Rabas, 2016. "How to reveal people’s preferences: Comparing time consistency and predictive power of multiple price list risk elicitation methods," Journal of Risk and Uncertainty, Springer, vol. 53(2), pages 107-136, December.
    7. Holzmeister, Felix & Stefan, Matthias, 2019. "The Risk Elicitation Puzzle Revisited: Across-Methods (In)consistency?," OSF Preprints pj9u2, Center for Open Science.
    8. Felix Holzmeister & Matthias Stefan, 2019. "The risk elicitation puzzle revisited: Across-methods (in)consistency?," Working Papers 2019-19, Faculty of Economics and Statistics, Universität Innsbruck.
    9. Felix Holzmeister & Matthias Stefan, 2021. "The risk elicitation puzzle revisited: Across-methods (in)consistency?," Experimental Economics, Springer;Economic Science Association, vol. 24(2), pages 593-616, June.
    10. Golo-Friedrich Bauermeister & Daniel Hermann & Oliver Musshoff, 2018. "Consistency of determined risk attitudes and probability weightings across different elicitation methods," Theory and Decision, Springer, vol. 84(4), pages 627-644, June.
    11. Holzmeister, Felix, 2017. "oTree: Ready-made apps for risk preference elicitation methods," Journal of Behavioral and Experimental Finance, Elsevier, vol. 16(C), pages 33-38.
    12. Fecke, Wilm & Danne, Michael & Mußhoff, Oliver, 2018. "E-commerce in agriculture: The case of crop protection product purchases in a discrete choice experiment," DARE Discussion Papers 1803, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    13. Ihli, Hanna Julia & Chiputwa, Brian & Musshoff, Oliver, 2013. "Do Changing Probabilities or Payoffs in Lottery-Choice Experiments Matter? Evidence from Rural Uganda," GlobalFood Discussion Papers 158146, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    14. Sauter, Philipp & Hermann, Daniel & Mußhoff, Oliver, 2015. "Risk attitudes of foresters, farmers and students: An experimental multimethod comparison," DARE Discussion Papers 1514, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    15. Golo-Friedrich Bauermeister & Oliver Mußhoff, 2016. "Konstante Wahrscheinlichkeiten vs. konstante Auszahlungsbeträge: Auswirkungen auf die ermittelte Risikoeinstellung und beobachtete Inkonsistenzrate in lotteriebasierten Experimenten [Probability Eq," Schmalenbach Journal of Business Research, Springer, vol. 68(2), pages 145-166, July.
    16. Römer, Ulf & Weber, Ron & Mußhoff, Oliver & Turvey, Calcum G., 2017. "Truth and consequences: Bogus pipeline experiment in informal small business lending," DARE Discussion Papers 1702, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    17. Elisabeth Vollmer & Daniel Hermann & Oliver Musshoff, 2019. "The disposition effect in farmers’ selling behavior: an experimental investigation," Agricultural Economics, International Association of Agricultural Economists, vol. 50(2), pages 177-189, March.
    18. Giuseppe Attanasi & Nikolaos Georgantzís & Valentina Rotondi & Daria Vigani, 2018. "Lottery- and survey-based risk attitudes linked through a multichoice elicitation task," Theory and Decision, Springer, vol. 84(3), pages 341-372, May.
    19. Pace, Noemi & Daidone, Silvio, 2024. "Impact of development interventions on individual risk preferences: Evidence from a field-lab experiment and survey data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 111(C).
    20. Filippin, Antonio & Crosetto, Paolo, 2014. "A Reconsideration of Gender Differences in Risk Attitudes," IZA Discussion Papers 8184, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D89 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:26:y:2019:i:1:p:58-63. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.