Higher-order risk preferences in social settings

Higher - order Risk Preferences in Social Settings

We study higher-order risk preferences, i.e. prudence and temperance, next to risk aversion in social settings. Previous experimental studies have shown that higherorder risk preferences aff ect the choices of individuals deciding privately on lotteries that only aff ect their own pay-off . Yet, most risky and fi nancially relevant decisions in the fi eld are made in the social settings of hous...

Moment characterization of higher-order risk preferences

Higher-order approximations for interval estimation in binomial settings

Article history: Received 12 September 2007 Received in revised form 22 February 2009 Accepted 23 March 2009

Risk Pooling, Risk Preferences, and Social Networks

Using data from a field experiment conducted in seventy Colombian municipalities, we investigate who pools risk with whom when risk pooling arrangements are not formally enforced. We explore the roles played by risk attitudes and network connections both theoretically and empirically. We find that pairs of participants who share a bond of friendship or kinship are more likely to (1) join the sa...

Experimental evidence of context-dependent preferences in risk-free settings

This study investigates context effects in general and the compromise effect in particular. It is argued that earlier research in this area lacks realism, a shortcoming that is a major drawback to research conclusions and stated management implications. The importance of this issue is stressed by previous research showing that behavioral anomalies found in hypothetical experimental settings ten...