This chapter surveys the rapidly growing literature in which risk preferences are measured and manipulated in … laboratory and field experiments. The most commonly used measurement instruments are: an investment task for allocations between … menus. Applications involve using inferred risk preferences to document demographic effects, e.g. gender, and to explain the …

1. Introduction -- 2. Risk and Risk Perception: Why we are not Rational in the Face of Risk -- 3. Expected Utility … how Information is presented -- 6. Emotions and Zero Risk Bias: Why we make bad Decisions and overspend on Risk Avoidance …We as humans are prone to a variety of wired-in cognitive mistakes in the way we interpret and react to risk …