Risk Aversion and Incentive Effects: Comment

  title={Risk Aversion and Incentive Effects: Comment},
  author={Glenn W. Harrison and Eric J. Johnson and Melayne Morgan Mcinnes and Elisabet E. Rutstr{\"o}m},
  journal={Behavioral \& Experimental Economics},
Holt and Laury, AER 2002, develop an experimental design to determine the risk aversion of an individual. They use their observations to argue that increased incentives appear to change risk attitudes, leading to greater risk aversion. However, their main treatment, the effects of scaling up the stakes of the lottery choice task, is confounded by a simple order effect. We extend their design to test for these order effects, and show that they are indeed significant. The size of the stakes still… 

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