Harbaugh, William; Krause, Kate; Vesterlund, Lise - 2001
In this paper we examine how risk attitudes change with age. We present participants from age 5 to 64 with choices … probability of the non-zero payoff. Surprisingly, we find that many participants are risk seeking when faced with high …-probability prospects over gains and risk averse when faced with small-probability prospects. Over losses we find the exact opposite …