In an experiment that elicits subjects' willingness to pay (WTP) for the outcome of a lottery, we confirm the fourfold … 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 …

degree of pessimism of the representative agent is the mean of the individual ones weighted by their index of absolute risk …

empirically show two main findings: first, risk-taking is positively related to the length of tax loss periods because the loss … rules shift some risk to the government; and second, the tax rate has a positive effect on risk-taking for firms that expect …

We argue that risk sharing motivates the bank-wide structure of bonus pay. In the presence of financial frictions that … make external financing costly, the optimal contract between shareholders and employees involves some degree of risk … to rationalize with incentive theories of bonus pay - but support an important risk sharing motive. In particular …

We study how background health risk affects financial risk-taking. We elicit financial risk-taking behavior of a … infections across time and space, we find that an increase in infections affecting background health risk translates into higher … financial risk-taking, and for the alleviating effect of self-insurance devices. …

We apply the basic lessons and insights learned in the elicitation and estimation of risk and time preferences … literature to the literature on social preferences. Following Andersen et al. (2008), we design a laboratory experiment to … jointly elicit risk preferences and preferences for altruism. Consistent with theory, we find that the standard simplifying …

This paper examines the effect of peers on individual risk taking. In the absence of informational motives, we … from conforming to the peer. We show experimentally that social utility generates substantial peer effects in risk taking …, compared to when lotteries are randomly assigned to them. -- peer effects ; decision making under risk ; social comparison …

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

can generate systematic biases in revealed preference measures such as spurious risk aversion. These effects are very …

environments modify students' risk-taking attitudes. In Booth and Nolen (2012b), subjects are in years 10 and 11, while in Booth …