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A parametric analysis of prospect theory's functionals for the general population

Booij, Adam S.; van Praag, Bernard M. S.; van de … - 2009

This paper presents the results of an experiment that completely measures the utility function and probability weighting function for different positive and negative monetary outcomes, using a representative sample of N = 1935 from the general public. The results confirm earlier findings in the...

Persistent link: https://www.econbiz.de/10010277017

Variation in risk seeking behavior in a natural experiment on large losses induced by a natural disaster

Page, Lionel; Savage, David; Torgler, Benno - 2012

This study explores people’s risk attitudes after having suffered large real-world losses following a natural disaster. Using the margins of the 2011 Australian floods (Brisbane) as a natural experimental setting, we find that homeowners who were victims of the floods and face large losses in...

Persistent link: https://www.econbiz.de/10009571117

Mistakes, closure and endowment effect in laboratory experiments

Ratan, Anmol - 2012

In this paper, we relax the hard closure property of experiments that have been used to study endowment effect in … careful interpretation of experiments that suggest endowment effectʺ in laboratory conditions. Other implications pertain to … external validity of experiments with hard closure. prospect-theory ; endowment effect ; reference-dependence ; loss aversion …

Persistent link: https://www.econbiz.de/10009559236

Deal or no deal? : decision-making under risk in a large-payoff game show

Post, Thierry; Baltussen, Guido; Assem, Martijn J. van den - 2006

experiments. Contrary to the traditional view of expected utility theory, the choices can be explained in large part by previous …

Persistent link: https://www.econbiz.de/10011348343

Aspirations, Prospect Theory and Entrepreneurship : Evidence from Colombia

Bogliacino, Francesco - 2015

In this article we test the main hypotheses of the behavioural theory of entrepreneurship, namely that risk preferences are reference-dependent, that entrepreneurs are not ambiguity-averse and that aspirations act as a reference point in the sense postulated by Prospect Theory. We use an...

Persistent link: https://www.econbiz.de/10013025392

Dominated choices in risk and time elicitation

Sommervoll, Dag Einar; Holden, Stein Terje - 2024

Many risk and time elicitation designs rely on choice lists that aim to capture a switch point. A choice list for a respondent typically contains two switch point defining choices; the other responses are dominated in the sense that the preferred option could be inferred from the switch point....

Persistent link: https://www.econbiz.de/10014575257

All over the map : a worldwide comparison of risk preferences

L'Haridon, Olivier; Vieider, Ferdinand M. - In: Quantitative economics : QE ; journal of the … 10 (2019) 1, pp. 185-215

We obtain rich measurements of risk preferences for 2939 subjects across 30 countries, and use the data to paint a picture of the distribution of risk preferences across the globe using structural equation models. Reference‐dependence and likelihood‐dependence are found to be important...

Persistent link: https://www.econbiz.de/10011994845

Under risk, over time, regarding other people : language and rationality within three dimensions

Jullien, Dorian - 2018

This paper conducts a systematic comparison of behavioral economics’s challenges to the standard accounts of economic behaviors within three dimensions: under risk, over time and regarding other people. A new perspective on two underlying methodological issues, i.e., interdisciplinarity and...

Persistent link: https://www.econbiz.de/10011809698

Measuring trust in institutions and its causal effect

Penczynski, Stefan P.; Santana, Maria Isabel - In: Quantitative economics : QE ; journal of the … 15 (2024) 1, pp. 213-243

We propose a novel way of measuring trust in institutions, which draws on the experimental method used to elicit time preferences. Our measure is provided in the meaningful metric of the subjective probability of trustworthiness of the trustee. In a lab‐in‐the‐field setting in the...

Persistent link: https://www.econbiz.de/10014496994

Theory matters for financial advice!

Hens, Thorsten; Mayer, János - 2014

We show that the optimal asset allocation for an investor depends crucially on the theory with which the investor is modeled. For the same market data and the same client data different theories lead to different portfolios. The market data we consider is standard asset allocation data. The...

Persistent link: https://www.econbiz.de/10010338686