Are People Inequality-Averse, or Just Risk-Averse?

Are People Inequality-Averse, or Just Risk-Averse?

Individuals’ preferences for risk and inequality are measured through choices between imagined societies and lotteries. The median relative risk aversion, which is often seen to reflect social inequality aversion, is between 2 and 3. Most people are also found to be individually inequality-averse, reflecting a willingness to pay for living in a more equal society. Left-wing voters and women are...

Are smarter people really less risk averse ?

Using hypothetical lottery choices to measure risk preferences, Frederick (2005) finds that higher cognitive ability is associated with less risk aversion. This paper documents, however, that when using an incentive compatible measure of risk preference, attitudes towards risk are not associated to cognitive ability as measured by Frederick’s (2005) three-item cognitive reflection test. This is...

Are they all crazy or Just Risk Averse? Some Movie Puzzles and Possible Solutions

Are Risk Averters Averse to Risky Gambles?∗

This paper defines local aversion to a risk index. I show that the local aversion to the Aumann and Serrano [2008] index of riskiness coincides with absolute risk aversion, and that the same applies for the Foster and Hart [2009] measure of riskiness. Using this “local consistency” I offer a new approach for axiomatizing the Aumann and Serrano index of riskiness and present other applications o...

Comparison of p300 in risk-seeker and risk-averse people during simple gambling task

Risk preference, the degree of tendency to take risk, has a fundamental role at individual and social health and is divided to risk seeker and risk averse. Therefore, the study of neural corelates of risk preferences is essential at the field of psychology and psychiatry. The current study aimed to examine and compare an ERP component named P300 between subjects with different risk preferences....