pattern of risk attitudes described by Kahneman and Tversky. In addition, we document a systematic effect of stake sizes on … the magnitude and sign of the relative risk premium, holding fixed both the probability that a lottery pays off and the … in which all departures from risk-neutral bidding are attributed to an optimal adaptation of bidding behaviour to the …

of savings, precautionary savings, loss aversion, and risk. We provide the relevant theory, followed by empirical tests …

observation refers to a choice between a safe option and a binary risk of winning or losing the game. Our setting offers a real-world …

effect. We show that loss aversion, moral costs, mental accounting, and risk preferences play a key role in explaining key … that risk aversion strengthens the cautionary effect of loss aversion and risk loving behavior attenuates, or reverses, it …

Loss aversion, risk aversion, and the probability weighting function (PWF) are three central concepts in explaining … decisionmaking under risk. I examine interlinkages between these concepts in a model of decisionmaking that allows for loss averse … commonly observed shapes of PWF and to risk aversion. In particular, I establish a connection between loss aversion and both …

We apply the basic lessons and insights learned in the elicitation and estimation of risk and time preferences … jointly elicit risk preferences and preferences for altruism. Consistent with theory, we find that the standard simplifying … assumptions about risk preferences lead to significantly biased estimates of altruism. This is particularly problematic when …

experiment, reduces evasion, as predicted by our theory. Loss aversion, risk aversion, and their interaction, are critical …

This study explores people’s risk attitudes after having suffered large real-world losses following a natural disaster … finding is consistent with prospect theory predictions of the adoption of a risk-seeking attitude after a loss. -- decision … under risk ; large losses ; natural experiment …