We explore the relation between probability weighting and household portfolio underdiversification in a representative … household survey, using custom-designed incentivized lotteries. On average, people display Inverse-S shaped probability …

We test the relation between ambiguity aversion and five household portfolio choice puzzles: non- participation, low ….S. household survey, we measure ambiguity aversion using custom- designed questions based on Ellsberg urns. As theory predicts …