Comprehension and risk elicitation in the field: Evidence from rural Senegal

In the past decade, it has become increasingly common to use simple laboratory games and decision tasks as a device for measuring both the preferences and understanding of rural populations in the developing world. This is vitally important for policy implementation in a variety of areas. In this pa...

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Main Authors: Charness, Gary, Viceisza, Angelino
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2011
Subjects:
Online Access:https://hdl.handle.net/10568/154092
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author Charness, Gary
Viceisza, Angelino
author_browse Charness, Gary
Viceisza, Angelino
author_facet Charness, Gary
Viceisza, Angelino
author_sort Charness, Gary
collection Repository of Agricultural Research Outputs (CGSpace)
description In the past decade, it has become increasingly common to use simple laboratory games and decision tasks as a device for measuring both the preferences and understanding of rural populations in the developing world. This is vitally important for policy implementation in a variety of areas. In this paper, we report the results observed using three distinct risk elicitation mechanisms, using samples drawn from the rural population in Senegal, West Africa. Whatever the intellectual merits of a particular elicitation strategy, there is little value in performing such tests if the respondents do not understand the questions involved. We test the understanding of and the level of meaningful responses to the typical Holt-Laury task, to a simple binary mechanism pioneered by Gneezy and Potters in 1997 and adapted by Charness and Gneezy in 2010, and to a nonincentivized willingness-to-risk scale a la Dohmen et al. We find a disturbingly low level of understanding with the Holt-Laury task and an unlikely-to-be-accurate pattern with the willingness-to-risk question. On the other hand, the simple binary mechanism produces results that closely match the patterns found in previous work, although the levels of risk-taking are lower than in previous studies. Our study is a cautionary note against utilizing either sophisticated risk-elicitation mechanisms at the possible cost of seriously diminished levels of comprehension or nonincentivized questions in the rural developing world.
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spelling CGSpace1540922025-11-06T05:17:58Z Comprehension and risk elicitation in the field: Evidence from rural Senegal Charness, Gary Viceisza, Angelino rural areas experimentation risk laboratory experimentation In the past decade, it has become increasingly common to use simple laboratory games and decision tasks as a device for measuring both the preferences and understanding of rural populations in the developing world. This is vitally important for policy implementation in a variety of areas. In this paper, we report the results observed using three distinct risk elicitation mechanisms, using samples drawn from the rural population in Senegal, West Africa. Whatever the intellectual merits of a particular elicitation strategy, there is little value in performing such tests if the respondents do not understand the questions involved. We test the understanding of and the level of meaningful responses to the typical Holt-Laury task, to a simple binary mechanism pioneered by Gneezy and Potters in 1997 and adapted by Charness and Gneezy in 2010, and to a nonincentivized willingness-to-risk scale a la Dohmen et al. We find a disturbingly low level of understanding with the Holt-Laury task and an unlikely-to-be-accurate pattern with the willingness-to-risk question. On the other hand, the simple binary mechanism produces results that closely match the patterns found in previous work, although the levels of risk-taking are lower than in previous studies. Our study is a cautionary note against utilizing either sophisticated risk-elicitation mechanisms at the possible cost of seriously diminished levels of comprehension or nonincentivized questions in the rural developing world. 2011 2024-10-01T13:59:26Z 2024-10-01T13:59:26Z Working Paper https://hdl.handle.net/10568/154092 en https://hdl.handle.net/10568/154398 https://doi.org/10.1111/agec.12023 https://hdl.handle.net/10568/152659 https://hdl.handle.net/10568/153236 Open Access application/pdf International Food Policy Research Institute Charness, Gary; Viceisza, Angelino. 2011. Comprehension and risk elicitation in the field: Evidence from rural Senegal. IFPRI Discussion Paper 1135. https://hdl.handle.net/10568/154092
spellingShingle rural areas
experimentation
risk
laboratory experimentation
Charness, Gary
Viceisza, Angelino
Comprehension and risk elicitation in the field: Evidence from rural Senegal
title Comprehension and risk elicitation in the field: Evidence from rural Senegal
title_full Comprehension and risk elicitation in the field: Evidence from rural Senegal
title_fullStr Comprehension and risk elicitation in the field: Evidence from rural Senegal
title_full_unstemmed Comprehension and risk elicitation in the field: Evidence from rural Senegal
title_short Comprehension and risk elicitation in the field: Evidence from rural Senegal
title_sort comprehension and risk elicitation in the field evidence from rural senegal
topic rural areas
experimentation
risk
laboratory experimentation
url https://hdl.handle.net/10568/154092
work_keys_str_mv AT charnessgary comprehensionandriskelicitationinthefieldevidencefromruralsenegal
AT viceiszaangelino comprehensionandriskelicitationinthefieldevidencefromruralsenegal