Understanding investors’ risk preferences is crucial for financial companies to manage risks and operate responsibly. Measuring risk using surveys is the standard practice in the field, but the method of incentivized experiments is a competitive alternative emerging from economic labs. It is...

Field constraints often necessitate choosing an elicitation task that is intuitive, easy to explain, and simple to implement. Given that subject behavior often differs dramatically across tasks when eliciting risk preferences, caution needs to be exercised in choosing one risk elicitation task...

Do laboratory experiments provide a reliable basis for measuring field preferences? Economists recognize that preferences can differ across individuals, but only a few attempts have been made to elicit individual preferences for representative samples of a population in a particular geographical...

Purpose – The purpose of this paper is to derive the determinants of young adults' subjective and objective risk attitude in theoretical and real-world financial decisions. Furthermore, a comparison of the factors that influence young adults' and older adults' risk attitude is...

We survey clients of a German online bank to study retail investors' beliefs about the autocorrelation of annual returns of the aggregate stock market, and the role of these beliefs in financial decisions. A majority of our respondents believe in mean reversion of aggregate returns, and these...