Reconsidering Risk Aversion
Risk aversion is typically inferred from real or hypothetical choices over risky lotteries, but such “untutored” choices may reflect mistakes rather than preferences. We develop a procedure to disentangle preferences from mistakes: after eliciting untutored choices, we confront participants with their choices that are inconsistent with expected-utility axioms (broken down enough to be self-evident) and allow them to reconsider their choices. We demonstrate this procedure via a survey about hypothetical retirement investment choices administered to 596 Cornell students. We find that, on average, reconsidered choices are more consistent with almost all expected-utility axioms, with one exception related to regret
Year of publication: |
[2021]
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Authors: | Benjamin, Daniel J. ; Fontana, Mark Alan ; Kimball, Miles S. |
Publisher: |
[S.l.] : SSRN |
Subject: | Risikoaversion | Risk aversion | Hochschule | Higher education institution | Absolventen | Graduates |
Saved in:
freely available
Extent: | 1 Online-Ressource (60 p) |
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Series: | CESR-Schaeffer Working Paper ; No. 006 |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 19, 2020 erstellt |
Other identifiers: | 10.2139/ssrn.3717102 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10013211721