Applying Quadratic Scoring Rule transparently in multiple choice settings: A note

Abstract

The quadratic scoring rule (QSR) is often used to guarantee an incentive compatible\nelicitation of subjective probabilities over events. Experimentalists have\nregularly not been able to ensure that subjects fully comprehend the consequences\nof their actions on payoffs given the rules of the games. In this note, we present a\nprocedure that allows the transparent use of the QSR even in multiple-choice scenarios.\nFor that purpose, two methodological means are applied: an alternative\nrepresentation of the score and a short learning period to familiarize subjects with\nthe payoff mechanism. The results suggest that both means were necessary and\nsuccessful in facilitating subjects’ understanding of the rule.