Belief Elicitation and Behavioral Incentive Compatibility

S-Tier
Journal: American Economic Review
Year: 2022
Volume: 112
Issue: 9
Pages: 2851-83

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

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

Abstract

Subjective beliefs are crucial for economic inference, yet behavior can challenge the elicitation. We propose that belief elicitation should be incentive compatible not only theoretically but also in a de facto behavioral sense. To demonstrate, we show that the binarized scoring rule, a state-of-the-art elicitation, violates two weak conditions for behavioral incentive compatibility: (i) within the elicitation, information on the incentives increases deviations from truthful reporting; and (ii) in a pure choice over the set of incentives, most deviate from the theorized maximizer. Moreover, we document that deviations are systematic and center-biased, and that the elicited beliefs substantially distort inference.

Technical Details

RePEc Handle
repec:aea:aecrev:v:112:y:2022:i:9:p:2851-83
Journal Field
General
Author Count
3
Added to Database
2026-01-25