In this paper we use an experiment to compare a theory of risk aversion and a theory of spite as an explanation for … overbidding in auctions. As a workhorse we use the second-price all-pay and the first-price winner-pay auction. Both risk and … spite can be used to rationalize deviations from risk neutral equilibrium bids in auctions. We exploit that equilibrium …

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. …

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

We embed an experiment in a large-scale representative survey to investigate how relative wealth affects risk … prediction of higher risk-taking in the middle of the distribution. Instead, we find that respondents who are induced to perceive … their relative wealth as low display more tolerance towards risk in a subsequent incentivized risk-taking task. This effect …

This study examines the effect of smallholder farmers' access to a formal climate risk transfer mechanism on their risk …-purchaser farmers. Similarly, non-purchasers would have attained a significant reduction in their risk-aversion if they had taken up the … insurance product. We also find that WICI has a positive and statistically significant effect on farmers' real-life risk …

their individual risk aversion. They choose between a fundamentalist and a trend-following rule to form expectations about … the price of a risky asset. Given their risk aversion, agents make a deterministic trade-off between mean and variance … both in choosing a forecasting heuristic and determining the number of risky assets to buy. Heterogeneous risk preferences …

Common integrated assessment models produce the counterintuitive result that higher risk aversion does not lead to …. The simulations show that aversion to this tipping point risk has little effect. For climate sensitivity of realistic …