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Joint measurement of risk aversion, prudence and temperance
Ebert, Sebastian; Wiesen, Daniel - 2010
We propose a method to measure the intensity of risk aversion, prudence (downside risk aversion) and temperance (outer … approach is not based on expected utility theory. In our experiment we find evidence for risk aversion, prudence and temperance … for being (second order) risk-loving. This highlights the importance of prudence when considering economic decisions under …
Persistent link: https://www.econbiz.de/10010293367
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Spatial allocation of capital: The role of risk preferences
Broll, Udo; Roldán-Ponce, Antonio; Wahl, Jack E. - 2010
of so-called relative prudence unambiguously decides whether or not the diversi cation of income risk favours the …
Persistent link: https://www.econbiz.de/10010301356
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Reflection for higher order risk preferences
Bleichrodt, Han; van Bruggen, Paul - 2018
preferences: we find risk aversion, prudence and intemperance for gains, but risk loving preferences, imprudence and temperance …
Persistent link: https://www.econbiz.de/10011932350
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How changing prudence and risk aversion affect optimal saving
Bauer, Christian; Buchholz, Wolfgang - 2008
We show how optimal saving in a two-period model is affected when prudence and risk aversion of the underlying utility … function change. Increasing prudence alone will induce higher savings only if, for certain combinations of the interest rate …
Persistent link: https://www.econbiz.de/10010264467
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Apportioning of risks via stochastic dominance
Eeckhoudt, Louis; Schlesinger, Harris; Tsetlin, Ilia - 2008
Consider a simple two-state risk with equal probabilities for the two states. In particular, assume that the random wealth variable Xi dominates Yi via ith-order stochastic dominance for i = M,N. We show that the 50-50 lottery [XN + YM, YN + XM] dominates the lottery [XN + XM, YN + YM] via (N +...
Persistent link: https://www.econbiz.de/10010264492
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Putting risk in its proper place
Eeckhoudt, Louis; Schlesinger, Harris - 2005
This paper examines preferences towards particular classes of lottery pairs. We show how concepts such as prudence and …
Persistent link: https://www.econbiz.de/10010271070
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Higher order risk preferences: New experimental measures, determinants and field behavior
Schneider, Sebastian O.; Sutter, Matthias - 2020
We use a novel method to elicit and measure higher order risk preferences (prudence and temperance) in an experiment … prudence - are strongly related to adolescents' field behavior, including their financial decision making, eco …-friendly behavior, and health status, including addictive behavior. Most importantly, we show that dropping prudence and temperance from …
Persistent link: https://www.econbiz.de/10012306410
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Higher Order Risk Preferences: New Experimental Measures, Determinants and Field Behavior
Schneider, Sebastian O.; Sutter, Matthias - 2020
We use a novel method to elicit and measure higher order risk preferences (prudence and temperance) in an experiment … prudence are strongly related to adolescents' field behavior, including their financial decision making, eco-friendly behavior …, and health status, including addictive behavior. Most importantly, we show that dropping prudence and temperance from the …
Persistent link: https://www.econbiz.de/10012314831
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Higher Order Risk Preferences: New Experimental Measures, Determinants and Field Behavior
Schneider, Sebastian; Sutter, Matthias - 2020
We use a novel method to elicit and measure higher order risk preferences (prudence and temperance) in an experiment … prudence - are strongly related to adolescents' field behavior, including their financial decision making, eco …-friendly behavior, and health status, including addictive behavior. Most importantly, we show that dropping prudence and temperance from …
Persistent link: https://www.econbiz.de/10012322445
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The development of risk aversion and prudence in Chinese children and adolescents
Heinrich, Timo; Shachat, Jason - In: Journal of Risk and Uncertainty 61 (2021) 3, pp. 263-287
environment. We use a simple binary choice task that tests risk aversion, as well as prudence. This is the first test for prudence …
Persistent link: https://www.econbiz.de/10014501959