Testing the Elicitation Procedure of the Minimum Acceptable Probability

  • Maria-Eugenia Polipciuc (Contributor)
  • Martin Strobel (Contributor)

Activity: Talk or presentationScience to science

Description

Betrayal aversion has been shown to be an important determinant of trust (Bohnet and Zeckhauser, 2004). We study whether the way betrayal aversion is identified (as a difference in Minimum Acceptable Probabilities, MAPs) is affected by beliefs about one’s prospects.

In a within-subject design, we find that MAPs are lower the worse the prospects one faces. This is similar to the distributional dependence of valuations elicited using the Becker–DeGroot–Marschak mechanism, of which MAPs are a special case. Our results suggest that distributional dependence should be accounted for when eliciting MAPs to isolate betrayal aversion.
Period7 Jun 20228 Jun 2022
Event title14th Maastricht Behavioral and Experimental Economics Symposium
Event typeUnknown
Degree of RecognitionInternational