may depend on wealth even if he knows his utility function lies in the class of constant relative risk aversion (CRRA …

ignorance. We pair portfolio and wealth distribution choice problems which have a common budget set. For a given bundle, the … distribution over an individual's wealth is the same for both problems. The portfolio choice serves as a benchmark to evaluate … whether the wealth distribution choice exhibits equity or efficiency preferring tastes. We report experiments using a within …

experiments. Contrary to the traditional view of expected utility theory, the choices can be explained in large part by previous … outcomes or surpassed by favorable outcomes. Our results point to reference-dependent choice theories such as prospect theory …

to a significant overestimation of consumption insurance and even more so at the bottom of the wealth distribution. …

Netherlands to investigate the role of liquid wealth. Within five years of job loss, the likelihood of being a permanent worker … shock to job security. This effect is driven by workers with low liquid wealth, pointing to liquidity constraints as an …

fallswith income and wealth. Entrepreneurs are less risk averse thanemployees, civil servants are more risk averse thanprivate …

-down" model of executive optimization. Others, like salience theory, assume a "bottom-up" influence where attention is driven by … aversion. We discuss the insights regarding the nature of attention and its role in economic theory. …