MetaTOC stay on top of your field, easily

On the Measurement of Strength of Preference in Units of Money

, , ,

Economic Record

Published online on

Abstract

We report an experimental study that aims to elicit monetary measures of strength of preference in choices involving pairs of risky prospects. Despite extensive testing to refine the instruments used, we find that these money measures are systematically biased upwards relative to subsequent binary choices. We discuss possible reasons for this bias and its broader implications.