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Many economically important settings, from financial markets to consumer choice, involve dynamic decisions under risk. People are willing to accept risk as part of a sequence of choices---even when it is fair or has a negative expected value---while at the same time rejecting positive-expected...
Persistent link: https://www.econbiz.de/10012834161
We document a robust dynamic inconsistency in risky choice. Using a unique brokerage dataset and a series of experiments, we compare people's initial risk-taking plans to their subsequent decisions. Across settings, people accept risk as part of a “loss-exit” strategy—planning to continue...
Persistent link: https://www.econbiz.de/10014257706
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We document a robust dynamic inconsistency in risky choice. Using a unique brokerage dataset and two preregistered experiments, we compare people's initial risk-taking plans to their subsequent decisions. In both settings, people accept risk as part of a "loss-exit" strategy-planning to continue...
Persistent link: https://www.econbiz.de/10012603375
We document a robust dynamic inconsistency in risky choice. Using a unique brokerage dataset and two preregistered experiments, we compare people's initial risk-taking plans to their subsequent decisions. In both settings, people accept risk as part of a "loss-exit" strategy-planning to continue...
Persistent link: https://www.econbiz.de/10012517036
In this chapter, we discuss the “lab-in-the-field” methodology, which combines elements of both lab and field experiments in using standardized, validated paradigms from the lab in targeting relevant populations in naturalistic settings. We begin by examining how the methodology has been...
Persistent link: https://www.econbiz.de/10012986659
Prior work has demonstrated that prosocial incentives – where individuals' effort benefits a charitable organization – can be more effective than standard incentives, particularly when the stakes are low. Yet, little is known about the effectiveness of prosocial incentives on people's...
Persistent link: https://www.econbiz.de/10012926542
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Persistent link: https://www.econbiz.de/10009741005
We introduce a simple, easy to implement instrument for jointly eliciting risk and ambiguity attitudes. Using this instrument, we structurally estimate a two-parameter model of preferences. Our findings indicate that ambiguity aversion is significantly overstated when risk neutrality is assumed....
Persistent link: https://www.econbiz.de/10010483592