This study experimentally evaluates the risk preferences of children and adolescents living in an urban Chinese environment. We use a simple binary choice task that tests risk aversion, as well as prudence. This is the first test for prudence in children and adolescents. Our results reveal that...

The empirical literature points to a stylized phenomenon of increased demand for hope following adversity. Clotfelter and Cook (1989) suggest that hope is a key sentiment underpinning recreational gambling. Chew and Ho (1994, this journal) offer the view of hope being experienced in lottery...