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How do people react to setbacks and successes? I introduce a new measure of challenge-seeking to determine the effect of winning and losing in a competition on the willingness to seek further challenges. Participants in a lab experiment compete in two-person tournaments and are then informed of...
Persistent link: https://www.econbiz.de/10010398552
consequences. Although risk preferences are likely important, existing research is silent about how social and risk preferences … not exposed to risk while beneficiaries’ final earnings may be larger or smaller than the allocation itself, depending on … the realized state of the world. In a second experiment, risk affects the earnings of givers but not of beneficiaries. We …
Persistent link: https://www.econbiz.de/10011584886
-stakes game, and controlling for performance differences, there is no gender gap in risk-taking among girls and boys in contrast … with adults, and, while girls take more risk than women, boys take less risk than men. We also find that female behavior is …
Persistent link: https://www.econbiz.de/10010333408
This study examines the effect of smallholder farmers' access to a formal climate risk transfer mechanism on their risk …. Results from the ESP model show that farmers who purchased WICI are less likely to be risk-averse compared with non …-purchaser farmers. Similarly, non-purchasers would have attained a significant reduction in their risk-aversion if they had taken up the …
Persistent link: https://www.econbiz.de/10012866564
compared in terms of efficiency and power to discriminate between low and high risk clients by employing data from a new …
Persistent link: https://www.econbiz.de/10010265990
risk and typically need to assume stability of these characteristics over time and across decision domains. We test the … reliability of two choice tasks for eliciting discount rates, risk aversion, and probability weighting and assess the stability of … largely uncorrelated with decisions in other important life domains involving intertemporal trade-offs and risk. …
Persistent link: https://www.econbiz.de/10010318820
We propose a model of instrumental belief choice under loss aversion. When new information arrives, an agent is prompted to abandon her prior. However, potential posteriors may induce her to take actions that generate a lower utility in some states than actions induced by her prior. These losses...
Persistent link: https://www.econbiz.de/10011584855
Social interactions pervade daily life and thereby create an abundance of social experiences. Such personal experiences likely shape what we believe and who we are. In this paper, we ask if and how personal experiences from social interactions determine individuals’ inclination to trust...
Persistent link: https://www.econbiz.de/10012018236
We focus on the preferences of an extremely salient group of highly-experienced individuals who are entrusted with making decisions that affect the lives of millions of their citizens, heads of government. We test for the presence of a fundamental behavioral bias, loss aversion, in the way heads...
Persistent link: https://www.econbiz.de/10012052869
Concern about potential free riding in the provision of public goods has a long history. More recently, experimental economists have turned their attention to the conditions under which free riding would be expected to occur. A model of free riding is provided here which demonstrates that...
Persistent link: https://www.econbiz.de/10010274945