Chained Gamble

Chaining (also called indirect linking) as used in the expression chained gamble or chained lottery is best conceived of as a strategy of adjusting preference measurement used within preference elicitation techniques such as the standard gamble and time tradeoff methodologies. The approach of chaining gambles (or chaining lotteries) has been offered as a solution to the problem of within-technique inconsistency found with real-world use and testing of the standard gamble as a preference elicitation methodology in economic and medical decision making. The goal here is to understand why such chaining is proposed as an attempt to solve problems of lack of internal consistency (presence of internal inconsistency) in preference elicitation methodologies. This entry illustrates chained gambles for the standard gamble.