Description:
This chapter compare hypothetical with actual bids of a Treasury bill dealer, and find that the dealer's measure of constant relative risk aversion using actual bid data is four times larger than under hypothetical assessment. This chapter also reports individual decision making experiments in which the incidence of confused behavior is reduced with monetary rewards, but subjects who appear not to be confused behave about the same with or without monetary rewards. This chapter finds that results in the dictator game are affected significantly by monetary incentives and that under no-pay conditions the results in ultimatum games are inconclusive because they fail to be replicable.