average about 40% of the risk neutral fundamental value. Neither uncertainty about the value of total dividend payments nor … specification can rationalize the low traded price in our indefinite-horizon asset markets, while risk attitudes do not play such an …

average, about 40% of the risk-neutral fundamental value. Neither uncertainty about the value of total dividend payments nor … preference specification that models the dynamic realization of dividend payments and incorporates risk preferences can …

The paper investigates the relation between the risk preferences of traders and the information aggregation properties … to the full revelation of the state when traders are more risk-averse. The observed pattern of prices is close to the … risk-neutral benchmark, while individuals are risk averse both in a risk elicitation task and when estimating their risk …

, in a laboratory experiment, we elicit peoples’ price predictions for simulated stocks and compare them to the Bayesian … benchmark. Then, in a second experiment, we elicit peoples’ daily price predictions for real stocks over a six-week period. In …

on individual characteristics like risk attitudes. In a portfolio choice experiment running over 10 weeks, we study how …

bubbles. We consider a setting where participants sorted according to their degree of risk aversion trade in experimental … asset markets. We show that risk sorting is able to explain bubbles partially: Markets with the most risk-tolerant traders … exhibit larger bubbles than markets with the most risk averse traders. In our study risk aversion does not correlate with …

markets we observe active trading and prices strongly driven by average risk perception. While standard finance theory …What people perceive as risk clearly goes beyond variance. Several papers have shown that, e.g., probability of loss … plays a more prominent role in perceived risk than does variance. We are the first to explore how individual risk perception …