CEU Electronic Theses and Dissertations, 2020
| Author | Khalili, Sabuhi |
|---|---|
| Title | Loss Aversion and Guessing Behaviour in Multiple-choice Tests: An Experimental Approach |
| Summary | This paper analyses how individuals with different levels of loss aversion react to the point deduction in multiple choice tests using an online experiment. I compare a penalty system in which 0.5 points are deducted for each wrong answer and participants may skip a question to get 0 score to a baseline system where no such penalty is given, and all other conditions are the same. Participants with high loss aversion levels are expected to skip more questions under the penalty system due to higher expected disutility from point deduction than those with lower loss aversion level. I find that participants randomized into the penalty system skip more questions; however, loss aversion or gender do not play a significant role in determining individual guessing behaviour. Based on the individual interviews with participants, I conclude that lack of high-stake environment in the knowledge competition unlike university or job recruitment exams might have encouraged participants to show similar riskiness on average. |
| Supervisor | Kaufmann, Marc |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2020/khalili_sabuhi.pdf |
Visit the CEU Library.
© 2007-2021, Central European University