We experimentally test overconfidence in investment decisions by offering participants the possibility to substitute … their own for alternative investment choices. Overall, 149 subjects participated in two experiments, one with just one risky …

comparably low returns and high risk has become known as the private equity premium puzzle. This paper provides evidence … supporting the hypothesis that lower risk aversion of entrepreneurs, and not necessarily credit constraints, may explain this … portfolios and experimentally validated risk attitudes. The results show that both the ownership probability and the conditional …

equity ; investment ; risk aversion … comparably low returns and high risk has become known as the private equity premium puzzle. This paper provides evidence … supporting the hypothesis that lower risk aversion of entrepreneurs, and not necessarily credit constraints, may explain this …

We study risk aversion and prudence in medical treatment decisions. In a laboratory experiment, we investigate the … frequency and intensity of second- and third-order risk preferences, as well as the effect of the medical decision context. Risk … risk, medical decision theory predicts lower thresholds for risk-averse than risk-neutral decision makers. Given a …

endowment effect experiment by eliciting both WTA and WTP from each of our 360 subjects (randomly selected customers of a car …

We present empirical evidence of how prior outcomes affect individual investors' subsequent risk taking. Investors who … portfolio risk taking following losses. They replace stocks sold with new positions of a higher (lower) value following recent … losses (gains), thereby leading to an increase (decrease) in overall stock portfolio risk taking. Our results are consistent …

language may influence risk perception and investment behavior, no study has explored the causal effects of linguistic … investment decisions is amplified by risk perception. Investor characteristics that significantly affect their risk perception … uncertainty on financial decision-makers. We address this research gap by presenting a controlled laboratory experiment exposing …

Purpose – The purpose of this paper is to derive the determinants of young adults' subjective and objective risk … adults' and older adults' risk attitude is provided.Design/methodology/approach – The paper relies on an experimental setting …-Survey.Findings – Young adults' objective risk aversion is not constant but increases with stake sizes. Furthermore, young adults' subjective …