Preference heterogeneity in experiments: Comparing the field and laboratory

• Published in: Journal of economic behavior & organization Vol. 73; no. 2; pp. 209 - 224
• Main Authors: Andersen, Steffen, Harrison, Glenn W., Lau, Morten Igel, Rutström, E. Elisabet
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01-02-2010; Elsevier; Elsevier Sequoia S.A
• Series: Journal of Economic Behavior & Organization
• Subjects: Comparative analysis; Comparative studies; Discount rates; Economic models; Economists; Estimating techniques; Estimation; Experiments; Field experiments; Field experiments Laboratory experiments Preferences Risk aversion Discount rates; Field work; Heterogeneity; Laboratories; Laboratory; Laboratory experiments; Preferences; Quantitative Finance; Research methodology; Risk assessment; Risk aversion; Strength; Risk aversion; Discount rates; Preferences; Field experiments; Laboratory experiments; Social Sciences & Humanities
• ISSN: 0167-2681; 1879-1751; 0167-2681
• DOI: 10.1016/j.jebo.2009.09.006

Do laboratory experiments provide a reliable basis for measuring field preferences? Economists recognize that preferences can differ across individuals, but only a few attempts have been made to elicit individual preferences for representative samples of a population in a particular geographical area, region or country. Our primary objective is to directly compare estimates of preferences elicited from a convenience sample and the estimates for the wider population from which that sample is drawn. We examine the strengths and weaknesses of laboratory and field experiments to detect differences in preferences over risk and time that are associated with standard, observable characteristics of the individual.