responsible for somebody else's payoffs increases risk aversion. This is however not attributable to a 'cautious shift' as often … thought. Indeed, looking at risk attitudes in the loss domain, we find an increase in risk seeking under responsibility. This … raises issues about the nature of various decision biases under risk, and to what extent changed behavior under …

Classic financial agency theory recommends compensation through stock options rather than shares to induce risk … neutrality in otherwise risk averse agents. In an experiment, we find that subjects acting as executives do also take risks that … excessive risks—a result that cannot be accounted for by classic incentive theory. We develop a basic model in which such risk …

We study the influence of risk and time preferences on trust and trustworthiness by conducting a field experiment in …. We find that while probability sensitivity or risk aversion do not affect trust, loss aversion influences trust … indirectly by lowering the expectations of return. Also, more risk averse and less present biased participants are found to be …

Most studies on the role of incentives on risk attitude report data obtained from within-subject experimental … paper reports instead between-subject results on the effect of monetary stakes on risk attitudes for small probability … prospects in a laboratory experiment. Under low stakes, we find the typical risk seeking behavior for small probabilities …

prospects involving both gains and losses. In an experiment we find that risk aversion for gains is robust under time pressure … whereas risk seeking for losses turns into risk aversion under time pressure. For mixed prospects, subjects become more loss …

In this paper we investigate the effects of risk preferences and attitudes towards risk on optimal antitrust … enforcement policies. First, we observe that risk aversion is negatively correlated with players' proclivity to form a cartel, and … design of an optimal law enforcement scheme must keep risk attitudes into account, as suggested by Polinsky and Shavell. We …

Women are commonly stereotyped as more risk averse than men in financial decision making. In this paper we examine … whether this stereotype reflects actual differences in risk taking behavior by means of a laboratory experiment with monetary … incentives. Gender differences in risk taking may be due to differences in subjects’ valuations of outcomes or to the way …

Risk aversion (a 2nd order risk preference) is a time-proven concept in economic models of choice under risk. More … recently, the higher order risk preferences of prudence (3rd order) and temperance (4th order) also have been shown to be quite … important. While a majority of the population seems to exhibit both risk aversion and such higher-order risk preferences, a …

individuals are found to be more risk averse, in agreement with common findings. Unlike previous studies that ascribed gender … differences in risk attitudes solely to differences in the degree utility curvature, however, our results show that this finding …