Does risk attitude (aversion or attraction) vary with the level of the income at risk? About half of our subjects chose to insure all levels, whereas another half chose instead not to insure low levels, but to insure high levels

In the generalized expected utility framework, the multiplicative relationship between preferences and beliefs complicates the identification of risk preferences. In experimental or field settings, the respondent's decision weight must be known with certainty to confidently infer accurate...

In this paper we show that if a very small, exogenously given probability of terminating the exchange is introduced in an elementary investment game, reciprocators play more often the defection strategy. Everything happens as if they hide behind probabilities in order to break the trust...