on individual characteristics like risk attitudes. In a portfolio choice experiment running over 10 weeks, we study how …

average about 40% of the risk neutral fundamental value. Neither uncertainty about the value of total dividend payments nor … specification can rationalize the low traded price in our indefinite-horizon asset markets, while risk attitudes do not play such an …

average, about 40% of the risk-neutral fundamental value. Neither uncertainty about the value of total dividend payments nor … preference specification that models the dynamic realization of dividend payments and incorporates risk preferences can …

bubbles. We consider a setting where participants sorted according to their degree of risk aversion trade in experimental … asset markets. We show that risk sorting is able to explain bubbles partially: Markets with the most risk-tolerant traders … exhibit larger bubbles than markets with the most risk averse traders. In our study risk aversion does not correlate with …

What people perceive as risk clearly goes beyond variance. Several papers have shown that, e.g., probability of loss … plays a more prominent role in perceived risk than does variance. We are the first to explore how individual risk perception … distributions which they then trade on. We first elicit subjects' individual risk perceptions, finding results in line with earlier …

The paper investigates the relation between the risk preferences of traders and the information aggregation properties … to the full revelation of the state when traders are more risk-averse. The observed pattern of prices is close to the … risk-neutral benchmark, while individuals are risk averse both in a risk elicitation task and when estimating their risk …

, in a laboratory experiment, we elicit peoples’ price predictions for simulated stocks and compare them to the Bayesian … benchmark. Then, in a second experiment, we elicit peoples’ daily price predictions for real stocks over a six-week period. In …

high-risk investments. We build on these studies via an incentivized experiment, in which we examine how manipulated levels … high-risk gamblers. In comparison, highest-risk gamblers traded more frequently regardless of volatility levels. Many … perceived as low-risk, and less likely to be the target of gambling interventions …