We propose the Virtual Bingo Blower (VBB) as a way to generate credible risk and ambiguity in computerized experiments …

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 …

In addition to discrimination, market power, and human capital, gender differences in risk preferences might also … in any given period. Subjects were informed of the exogenous risk premium being offered for the risky job. Women were … gap in the experiments. That women were more risk averse than men was also manifest in the Pratt-Arrow Constant Absolute …

experiment, decision-makers are both risk-seekers (i.e., the mean WTP for insurance is on average smaller than the expected value … compensation schemes and ambiguity on insurance and self-insurance decisions. Consistent with theory, we find that government … increases WTPs for insurance. This result, which indicates that decision-makers are ambiguity averse, is in line with previous …

We relax assumptions on individual risk preference, and set two theoretical rules for portfolio choices: either … minimize or maximize risk, for any return. Risk is modeled by four alternative formulas. We empirically test these rules by … uniquely consider 'money'; or they experience a 'subjective' perception of money. We find a large dominance of risk …

This short paper demonstrates that the claim of Cumulative Prospect Theory (CPT) that people are risk seeking for loss … gives a power factor for losses of less than 1. This would mean that people are risk seeking for loss prospects. However …, makes the value function convex, which indicates risk aversion. It follows that people are generally risk averse both for …

disclosed the payoff structure; (2) the choice treatment in the context of SDM under risk, where the decision makers are … distribution lead to robust deviations from maximisation. The results of the choice treatment show that the risk-averse decision …We everyday engage in the 'Small Decision Making (SDM).' This paper presents an experiment on SDM that consists of the …

In this study, we investigate the changes in risk attitudes and risk perceptions that occur while collective risk … preferences are formed. Data on risk attitudes and risk perceptions were collected in lottery choice experiments. The subjects … estimation approach. The behavioral models used for structural estimation are based on expected utility theory (EUT), prospect …

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 …