Showing 1 - 10 of 1,172
This study test whether social reference points impact individual risk taking. In a laboratory experiment, decision makers observe the earnings of a peer subject before making a risky choice. We exogenously manipulate the peer earnings across two treatments. We find a significant treatment...
Persistent link: https://www.econbiz.de/10010211343
This paper investigates how Confucianism affects individual decision making in Taiwan and in China. We found that Chinese subjects in our experiments became less accepting of Confucian values, such that they became significantly more risk loving, less loss averse, and more impatient after being...
Persistent link: https://www.econbiz.de/10010785128
Willingness to take risk depends on whether the risk affects others as well as oneself and on how the risk affects oneś position vis-á-vis others. Taking a bet can improve oneś position relative to others or threaten it. We present an experiment that explores individual attitudes to lotteries...
Persistent link: https://www.econbiz.de/10009784058
Prospect theory (PT) is the dominant descriptive theory of decision making under risk today. For the modeling of choices, PT relies on a psychologically founded separation of risk attitudes into attitudes towards outcomes, captured in a value function; and attitudes towards probabilities,...
Persistent link: https://www.econbiz.de/10009792472
With the rise of experimental research in the social sciences, numerous methods to elicit and classify people's risk attitudes in the laboratory have evolved. However, evidence suggests that people's attitudes towards risk may change considerably when measured with different methods. Based on a...
Persistent link: https://www.econbiz.de/10012098392
The present paper introduces a theoretical framework through which the degree of risk aversion with respect uncertain prices can be measured through the context of the indirect utility function (IUF) using a lab experiment. First, the paper introduces the main elements of the duality theory (DT)...
Persistent link: https://www.econbiz.de/10013368182
Laboratory experiments involving a real effort task are conducted to examine the importance of gender differences in competition aversion for generating gender wage gaps. Cross-subject design treatment and control experiments suggest that gender differences in risk aversion play no significant...
Persistent link: https://www.econbiz.de/10012820835
We model an urban labour market in a developing economy, incorporating workers’ risk attitudes. Trade-offs between risk aversion and ability determine worker allocation across formal and informal wage employment, and voluntary and involuntary self employment. Greater risk of informal wage...
Persistent link: https://www.econbiz.de/10009725361
The majority of empirical studies make use of the assumption of stable preferences in searching for a relationship between risk attitude and the decision to become and stay an entrepreneur. Yet empirical evidence on this relationship is limited. In this paper, we show that entry into...
Persistent link: https://www.econbiz.de/10010374180
The majority of empirical studies make use of the assumption of stable preferences in searching for a relationship between risk attitude and the decision to become and stay an entrepreneur. Yet empirical evidence on this relationship is limited. In this paper, we show that entry into...
Persistent link: https://www.econbiz.de/10010345248