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We examine whether the way individuals randomize between options captures their decision confidence. In two experiments in which subjects faced pairs of options (a lottery and a varying sure payment), we allowed subjects to choose randomization probabilities according to which they would receive...
Persistent link: https://www.econbiz.de/10015213489
There is a substantial literature examining coordination in public goods games. We conducted an experiment to explore …
Persistent link: https://www.econbiz.de/10015214486
and DRD4) are significant determinants of risk taking in investment decisions. We find that the 5-HTTLPR s/s allele … carriers take 28% less risk than those carrying the s/l or l/l alleles of the gene. DRD4 7-repeat allele carriers take 25% more … risk than individuals without the 7-repeat allele. These findings contribute to the emerging literature on the genetic …
Persistent link: https://www.econbiz.de/10015215671
When investment is repeated, previous outcomes (winning/losing) as well as the current budget level (gain/loss domain) influence decisions. The first is related to the so-called "gamblers fallacy". The second to value function relative to some reference point. Both effects have been extensively...
Persistent link: https://www.econbiz.de/10015217487
(1952) and substitutes the fourfold pattern of risk attitudes introduced by Cumulative Prospect Theory. The results … conditions of risk and may signal a return to a description of people’s behavior that only relies on the utility-like function. …
Persistent link: https://www.econbiz.de/10015217742
In an experiment using two-bidder first-price sealed bid auctions with symmetric independent private values, we …
Persistent link: https://www.econbiz.de/10015217873
In an experiment using two-bidder first-price sealed bid auctions with symmetric independent private values, we scan …), risk aversion in an investment task (Dreber and Hoffman, 2007), and the average profitability of high-frequency traders in …
Persistent link: https://www.econbiz.de/10015217874
Using a laboratory experiment we investigate how skew in uences choices under risk. We find that subjects make …
Persistent link: https://www.econbiz.de/10015218096
This paper discusses solutions derived from lottery experiments using two alternative assumptions: that people perceive wealth changes as absolute amounts of money; and that people consider wealth changes as a proportion of some reference value dependant on the context of the problem under...
Persistent link: https://www.econbiz.de/10015218206
particular, we found that optimism and anxiety were a liability in unfavorable markets, leading to unreasonable levels of risk …. Impulsivity was a liability in both favorable and unfavorable markets, leading to high risk on unfavorable markets, and low risk … in favorable markets. Openness to experience was an asset in unfavorable markets, leading to adjusted risk taking …
Persistent link: https://www.econbiz.de/10015218593