This study introduces and validates a domain-specific investment risk-preference measure that integrates elements of revealed-preference tests, using choice scenario dyads, with stated-preference approaches that leverage individual experiences and perceptions. Data from two surveys were analyzed...

We develop a micro-founded framework for accounting for individuals' effort and cognitive noise which confound estimates of preferences based on observed behavior. Using a largescale experimental dataset we estimate that failure to properly account for decision errors due to (rational)...

We provide evidence for an expectation gap, where risk-averse as well as impatient households and experts provide significantly higher prior inflation forecasts. Using a survey randomized control trial (RCT), we can show that information about inflation forecasts closes this expectations gap....

We propose a novel way of measuring trust in institutions, which draws on the experimental method used to elicit time preferences. Our measure is provided in the meaningful metric of the subjective probability of trustworthiness of the trustee. In a lab‐in‐the‐field setting in the...

We provide evidence for an expectation gap, where risk-averse as well as impatient households and experts provide significantly higher prior inflation forecasts. Using a survey randomized control trial (RCT), we can show that information about inflation forecasts closes this expectations gap....

Many risk and time elicitation designs rely on choice lists that aim to capture a switch point. A choice list for a respondent typically contains two switch point defining choices; the other responses are dominated in the sense that the preferred option could be inferred from the switch point....

This paper studies the relationship between income inequality and risk taking. Increased income inequality is likely to enlarge the scope for upward comparisons and, in the presence of reference-dependent preferences, to increase willingness to take risks. Using a globally representative dataset...

This paper studies the relationship between income inequality and risk taking. Increased income inequality is likely to enlarge the scope for upward comparisons and, in the presence of reference-dependent preferences, to increase willingness to take risks. Using a globally representative dataset...

We study the impact of financial literacy on financial risk preference. When financial literacy is measured jointly by actual and self-assessed scores, we find compelling evidence of a valley-shaped relationship between actual financial literacy and risk preference. At a given level of...

In this study, we focus on managerial incentives provided by debt-like compensation and further investigate whether and to what extent such managerial incentives may affect CEOs' decisions on risk management. Building on cumulative prospect theory and instrumental stakeholder theory, we propose...

While the COVID-19 pandemic has intensified counter-urban migration trends globally, with rural areas often portrayed as ideal havens, the post-migration realities and risks faced by rural in-migrants remain understudied. Addressing this research gap, this research investigates the neighborhood...

This paper explores how positive feedback in a competitive setting shapes the evolution of gender differences in risk tolerance during adolescence. We use data from professional diving, a 'real life, real risk' environment where the notion of risk is very intuitive and associated with the height...

We investigate how strongly the local environment beyond the family can contribute to understanding the formation of children's economic preferences. Building on precise geolocation data for around 6000 children, we use fixed effects, spatial autoregressive models and Kriging to capture the...

We investigate how strongly the local environment beyond the family can contribute to understanding the formation of children's economic preferences. Building on precise geolocation data for around 6.000 children, we use fixed effects, spatial autoregressive models and Kriging to capture the...

We investigate how strongly the local environment beyond the family can contribute to understanding the formation of children's economic preferences. Building on precise geolocation data for around 6.000 children, we use fixed effects, spatial autoregressive models and Kriging to capture the...

This paper examines efficient allocations in economies where consumers exhibit heterogeneous smooth ambiguity preferences and face model uncertainty with a common set of identifiable models. Aggregate endowment is ambiguous. We characterize economies where the representative consumer is of the...

We embed an experiment in a large-scale representative survey to investigate how relative wealth affects risk-taking and how this effect varies as a function of perceived control over life outcomes. Our results contest the common prediction of higher risk-taking in the middle of the...

Digital currencies, including Bitcoins, Ethereum, and others, are an established alternative asset class opted by individual and institutional investors worldwide. However, this digital asset class carries several inherent risks. This study investigates the influence of three key risks,...

Luckman et al. (2018) experimentally tested the conjecture that a single model of risky intertemporal choice can account for both risky and intertemporal choices, and under the conditions of their experiment, found evidence supporting it. Given the existing literature, that is a remarkable...

We investigate how digital transformation affects corporate risk-taking by using the data of China's A-share listed companies from 2012 to 2021, and examines the mediating role of managerial ability. The results demonstrate that digital transformation is significantly and positively related to...