Multiple Switching and Data Quality in the Multiple Price List

• 成果类型: Article
• 署名作者: Yu, Chi Wai; Zhang, Y. Jane; Zuo, Sharon Xuejing
• 署名单位: Hong Kong University of Science & Technology; University of New South Wales Sydney; Fudan University; Shanghai Institute of International Finance & Economics
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_00895
• 发表日期: 2021-03
• 页码: 136-150
• 关键词: eliciting risk; preferences; attitudes

摘要

A substantial proportion of individuals who complete the widely used multiple price list (MPL) instrument switch back and forth between the safe and the risky choice columns, behavior that is believed to indicate low-quality decision making. We develop a conceptual framework to formally define decision-making quality, test explanations for the nature of low-quality decision making, and introduce a novel nudge treatment that reduced multiple switching behavior and increased decision-making quality. We find evidence in support of task-specific miscomprehension of the MPL and that non-multiple switchers and relatively high-cognitive-ability individuals are not immune to low-quality decision making.