Using a laboratory experiment we investigate how skew in uences choices under risk. We find that subjects make …

lottery choices. We conclude that skewed, long-shot payoffs entice decision makers to higher levels of risk taking than they …We develop a new protocol, adapted from the Eckel and Grossman (2002, 2008) risk measure, to elicit skewness … preferences. The new lottery choices have the same expected payoffs and risk (variance) as the original choices, but with …

An extensive literature has studied ambiguity aversion in economic decision making, and how ambiguity aversion can …

An extensive literature has studied ambiguity aversion in economic decision making, and how ambiguity aversion can …

An extensive literature has studied ambiguity aversion in economic decision making, and how ambiguity aversion can …

acquired. Roughly half of the participants do not base their decision on a subjective belief of the probability of guilt. The …

acquired. Roughly half of the participants do not base their decision on a subjective belief of the probability of guilt. The …

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 …

In this paper we show that the wildly popular Holt and Laury (2002) risk preference elicitation method confounds … estimates of the curvature of the utility function, the traditional notion of risk preference, with an estimate of the extent to … that our new method yields significantly different levels of implied risk aversion than the Holt and Laury task even after …

Despite the fact that conceptual models of individual decision making under risk are deterministic, attempts to … econometrically estimate risk preferences require some assumption about the stochastic nature of choice. Unfortunately, the … inferences about structural risk preferences across the competing specifications. Overall, a mixture model combining the two …