compensation schemes and ambiguity on insurance and self-insurance decisions. Consistent with theory, we find that government … support for the hypothesis that attitude to risk and attitude to ambiguity are two independent phenomena. In fact in this … experiment, decision-makers are both risk-seekers (i.e., the mean WTP for insurance is on average smaller than the expected value …

In this paper we show that the wildly popular Holt and Laury (2002) risk preference elicitation method confounds … estimates of the curvature of the utility function, the traditional notion of risk preference, with an estimate of the extent to … that our new method yields significantly different levels of implied risk aversion than the Holt and Laury task even after …

Despite the fact that conceptual models of individual decision making under risk are deterministic, attempts to … econometrically estimate risk preferences require some assumption about the stochastic nature of choice. Unfortunately, the … inferences about structural risk preferences across the competing specifications. Overall, a mixture model combining the two …

This experimental study investigates insurance decisions in low-probability, high-loss risk situations. Results … individuals are risk averse with no specific threshold probability. …

We examine whether prior exposure to environments with a varying degree of risk affects individuals’ risk …-taking behavior. Using a laboratory experiment, we find that subjects exposed to a high risk environment exhibit higher levels of risk … aversion than those who were exposed to a moderate or low risk environment. This effect is not driven by subjects’ realized …