Fellner, Gerlinde; Maciejovsky, Boris - Max-Planck-Institut für Ökonomik, Max-Planck-Gesellschaft
In this paperwe relate individual risk attitude as elicited by binary lotteries and certainty equivalents to market behavior. By analyzing 26 independent markets with a total of 280 participants we show that binary lottery choices and certainty equivalents are pootly correlated. Only lottery...