We report on a laboratory experiment testing for the presence of loss aversion, as separate from risk aversion … loss by experimental participants. Our experimental design augments the Holt-Laury risk preference elicitation methodology … additional reluctance to participate in a mixed domain lottery beyond that predicted by risk aversion. We show that only …

Prospect Theory (PT) and Constant Relative Risk Aversion (CRRA) have clear-cut implications for the optimal asset … allocation between stocks and the risk-free asset as a function of the investment horizon. While CRRA preferences imply that the …

specification includes two parameters: one for ambiguity attitudes and another for risk attitudes. We also estimate a three …

The experiment reported in this paper identifies the effect of experience on revealed risk attitudes by examining “one …-shot” insurance choices made by subjects faced with a low-probability risk and their choices when they are faced with repeated … exposure to an identical risk. I find that subjects engaged in greater risk taking when making repeated choices. Estimates from …

Most textbook finance literature assumes risk to be the standard deviation of returns (volatility), which is not only … is consistent with investors’ actual perception of risk. Our method is presenting investors return distributions with … different risk characteristics for which they have to state their perceived risk and make investment decisions. Our results hint …

extent observed team decisions under risk are actually consistent with the principles of rational choice, specifically the … individuals, teams accumulate significantly more expected value at a significantly lower total risk (measured in SD). We introduce … a team decision algorithm, excess-risk vetoing, that combines simple majority voting with the right to veto alternatives …

This paper uses non-parametric methods to study the efficiency (Dybvig, 1988 and Post, 2003) and risk-profiles (Varian …. Further, our results suggest that a representative agent exhibits decreasing absolute risk aversion and constant relative risk …

-choice tasks for elicitation of risk attitudes. First, I compare the investment task of Gneezy and Potters (1997) with the standard …