This paper presents a laboratory experiment that directly tests the theoretical predictions of consumption choices …

Risk aversion (a 2nd order risk preference) is a time-proven concept in economic models of choice under risk. More …-averse behaviors might be generated by a simple type of basic lottery preference for either (1) combining "good" outcomes with "bad … dichotomy. Our own experiment is the first to look beyond 4th order risk preferences and we examine risk attitudes at even …