Showing 41 - 50 of 822,855
We report evidence of an endowment effect for risk, extending previous results to the popular paired-choice lottery … setting. Specifically, we observe a distribution of revealed preferences consistent with risk aversion that diminishes in …
Persistent link: https://www.econbiz.de/10012890580
Measuring risk aversion is sensitive to assumptions about the wealth in subjects' utility functions. Data from the same … simultaneously with risk aversion. This paper first shows how wealth estimates can be identified assuming constant relative risk … relative risk aversion. An alternative explanation is that subjects do not fully integrate their wealth with income from the …
Persistent link: https://www.econbiz.de/10010374868
measure based on decreasing absolute risk aversion utility function. I derive necessary and suffi cient conditions for …
Persistent link: https://www.econbiz.de/10014039652
which may be reduced to requiring initial wealth to be total lifetime wealth of the decision maker. Still, even when initial … wealth is allowed to be small and interpreted narrowly as gambling wealth, classic preference reversal is not possible within …
Persistent link: https://www.econbiz.de/10014162691
We propose the Virtual Bingo Blower (VBB) as a way to generate credible risk and ambiguity in computerized experiments …
Persistent link: https://www.econbiz.de/10015075038
risk preferences. Here, we develop an analogous tool for choice under uncertainty – the ambiguity triangle – and show that … characterize this heterogeneity with finite-mixture estimates of a one-parameter extension of Expected Utility Theory wherein 48 …
Persistent link: https://www.econbiz.de/10013019415
risk preferences. Here, we develop an analogous tool for choice under uncertainty - the ambiguity triangle - and show that … characterize this heterogeneity with finite-mixture estimates of a one-parameter extension of Expected Utility Theory wherein 48 …
Persistent link: https://www.econbiz.de/10013020058
previous studies that found a negative relation between cognitive ability and risk aversion into perspective and in particular … show that cognitive ability is related to noisy behavior rather than risk preferences. We also find age and education to be … and more robustly correlated to risk preferences …
Persistent link: https://www.econbiz.de/10012910413
This paper uses laboratory experiments to study subjects' assessment of uncertainty resulting from strategic and non-strategic decisions of other players. Non-strategic events are defined by the colors of balls drawn from urns, whereas strategic events are defined by the action choice in Stag...
Persistent link: https://www.econbiz.de/10013234782
risk preferences. Here, we develop an analogous tool for choice under uncertainty - the ambiguity triangle - and show that … characterize this heterogeneity with finite-mixture estimates of a one-parameter extension of Expected Utility Theory wherein 48 …
Persistent link: https://www.econbiz.de/10011284445