Belief Elicitation with a Synchronized Lottery Choice Menu That Is Invariant to Risk Attitudes

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2016
Volume: 8
Issue: 1
Pages: 110-39

Authors (2)

Charles A. Holt (University of Virginia) Angela M. Smith (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper uses a Bayesian information processing task to compare belief elicitation mechanisms including a quadratic scoring rule, a Becker-DeGroot-Marschak pricing procedure, and a two-stage menu of lottery choices that is structured to identify a precise point of probability indifference. The choice menu yields a higher incidence of correct Bayesian responses and lower belief error averages. Unlike the quadratic scoring rule, the binary payoffs for the lottery choice mechanism are synchronized to provide theoretical incentive-compatibility regardless of risk attitudes. In addition, the choice menu structure is more transparent and intuitive than the Becker-DeGroot-Marschak procedure. (JEL C91, D44, D81, D83)

Technical Details

RePEc Handle
repec:aea:aejmic:v:8:y:2016:i:1:p:110-39
Journal Field
General
Author Count
2
Added to Database
2026-02-02