Explanation of Experiment
Welcome and thanks for your participation!
You will be asked to state your preferences between
different risky prospects. So, these are “what-would-youdo-if” questions.
An example of a (risky) prospect:
⅓
€10
⅔
€8
This prospect gives:
€10 with probability ⅓;
€8 with probability ⅔.
There are no right or wrong answers.
Please, always choose what you yourself (subjectively) prefer
most. That is also what we are interested in, and what we
want to investigate.
Procedure
You will be asked to fill in three questionnaires.
For participation you all receive €10.
2
Participant name ...
Answer Sheet
First value
x1 = €. ...
Second value
x2 = €. ...
Third value
x3 = €. ...
Fourth value
x4 = €. ...
TO.0
TO.1
Determining first number
x1
Left prospect
½
½
Right prospect
€X
€300
€11
½
€10
€1
½
€8
What would you choose if X = 300?
11?
- For small values of X you prefer the right prospect.
- For large values of X you prefer the left prospect.
- For some value of X, which we call x1, your preference
switches.
- Fill this switching value in below, and then on page TO.0.
x1 =
...
Determining second number
TO.2
x2
First substitute your
value x1 here.
½
½
€X
€1
½
...
½
€8
- You have substituted your value x1.
- Determine your switching value of X again.
- We call it x2 (obviously, x2
> x1).
- Fill it in below and on page TO.0.
x2 =
...
Determining third number
TO.3
x3
First substitute your
value x2 here.
½
½
€X
€1
½
...
½
€8
- You have substituted your value x2.
- Determine your switching value of X again.
- We call it x3 (obviously, x3
> x2).
- Fill it in below and on page TO.0.
x3 =
...
Determining fourth number
TO.4
x4
First substitute your
value x3 here.
½
½
€X
€1
½
...
½
€8
- You have substituted your value x3.
- Determine your switching value of X again.
- We call it x4 (obviously, x4
> x3).
- Fill it in below and on page TO.0.
x4 =
...