Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/303069 
Year of Publication: 
2024
Series/Report no.: 
ECONtribute Discussion Paper No. 336
Publisher: 
University of Bonn and University of Cologne, Reinhard Selten Institute (RSI), Bonn and Cologne
Abstract: 
We propose an easy-to-use method for estimating preference parameters experimentally: choices from strictly concave budget restrictions (SCBRs). SCBRs generalize the popular method of analyzing choices from linear budget restrictions (LBRs). SCBRs promise (i) to improve the informational content of individual choices by reducing the number of corner allocations and (ii) to increase the range of identifiable behavioral types. Two online studies on risk and time preferences confirm the benefits of SCBRs vis-à-vis LBRs: (i) They reduce corner allocations drastically and make more participants estimable individually. (ii) They elicit a richer distribution of preference parameters, specifically, distinguishing linear from convex utility.
Subjects: 
Preference elicitation
time preferences
risk preferences
budget constraints
JEL: 
C91
D01
D81
D90
Document Type: 
Working Paper

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