Purpose
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The behavioural task is designed to elicit risk preferences in an incentive
compatible way. The measure requires minimal numeracy skills, avoids truncation
of the data, allows to precisely estimate both risk aversion and risk seeking,
and is not affected by the degree of loss aversion or by violations of the
Reduction Axiom.
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Questions
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The BRET asks subjects to decide at which point to stop collecting a series of 100 boxes, one of which contains a time bomb. Earnings increase linearly with the number of boxes collected but are equal to zero if one of them contains the bomb. The task is designed to avoid potential truncation of the data, so that subjects are free to choose any number between 0 and 100. |
Sub-scales
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N/A
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Domain
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Behavioral Measures of Risk
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Psychometrics
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Sample items
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Exact wording not reported.
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