About this document
Multiple Price List Methodology by Lee Pearson is a document available to read on EtoBox.
This document describes the multiple price list (MPL) method for measuring risk aversion. [1] The MPL presents participants with choices between a safe option (Option A) and a probabilistic option (Option B) with increasing risk/reward. [2] By tracking the point where a participant switches from choosing the safe to risky option, researchers can estimate their level of risk aversion. [3] The document provides an example of how MPL choices map onto estimates of Constant Relative Risk Aversion preferences and
- Author
- Lee Pearson
- Language
- EN