Showing 1 - 10 of 486
The psychological basis for rank-dependent probability weighting, and for an inverse-S probability weighting function (PWF) in particular, has often been questioned. I examine the existence and shape of the PWF in a model allowing for optimism/pessimism over probability distributions and for...
Persistent link: https://www.econbiz.de/10012126760
We report on a laboratory experiment testing for the presence of loss aversion, as separate from risk aversion … loss by experimental participants. Our experimental design augments the Holt-Laury risk preference elicitation methodology … additional reluctance to participate in a mixed domain lottery beyond that predicted by risk aversion. We show that only …
Persistent link: https://www.econbiz.de/10011997618
Probabilistic risk beliefs are key drivers of economic and health decisions, but people are not always certain about … measurable separately from the levels of risk beliefs. People with higher levels of imprecision update their beliefs more in …
Persistent link: https://www.econbiz.de/10014390526
attitudes towards ambiguity and compound risk which suggests that compound risk aversion may provide a psychological foundation … for ambiguity aversion. However, compound risk aversion and ambiguity aversion may also be independent psychological …’s ability to reduce compound to simple risks, and analyzing how this affects their compound risk and ambiguity attitudes in …
Persistent link: https://www.econbiz.de/10014544917
take risk as measured by the general risk question. We demonstrate that this disposition, which we call risk conception, is … strongly associated with optimism, a stable facet of personality and that it predicts real-life risk taking. The general risk … question captures this disposition alongside pure risk preference. This enlightens why the general risk question is a better …
Persistent link: https://www.econbiz.de/10011880595
measurement in influencing economic decisions. They attempt to measure uncertainty by indexes of volatility of the stock market … although risk can be measured, uncertainty cannot be measured. Even though risk can be measured, a simple symmetric measure … attempt at "measuring" risk or (fundamental) uncertainty is flawed. …
Persistent link: https://www.econbiz.de/10011543578
individuals are found to be more risk averse, in agreement with common findings. Unlike previous studies that ascribed gender … differences in risk attitudes solely to differences in the degree utility curvature, however, our results show that this finding …
Persistent link: https://www.econbiz.de/10003831223
. -- framing ; choice under risk ; time preference ; experiment …
Persistent link: https://www.econbiz.de/10009681527
We report the results of a laboratory experiment testing for the existence of loss aversion in a standard risk aversion … incentivized risk preference elicitation task. We find loss aversion, distinct from risk aversion, has a significant effect on … behavior resulting in participants requiring higher compensation to bear risk. …
Persistent link: https://www.econbiz.de/10010379927
decisionmaker who does not have constant-absolute-risk-averse preferences and who evaluates her decisions one by one, there exists a …
Persistent link: https://www.econbiz.de/10003561617