منابع مشابه
Measuring Risk Aversion and the Wealth Effect
Measuring risk aversion is sensitive to assumptions about the wealth in subjects’ utility functions. Data from the same subjects in lowand high-stake lottery decisions allow estimating the wealth in a pre-specified oneparameter utility function simultaneously with risk aversion. This paper first shows how wealth estimates can be identified assuming constant relative risk aversion (CRRA). Using ...
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10 We examine risk preferences in an urban setting in a low-income developing country with nonstudent subjects by adapting the experimental approach of Holt and Laury (2002) (HL). We conducted 22 group experiments with 404 participants and used in-kind payoffs. The average respondent was ‘riskaverse’ (the midpoint of Constant Relative Risk Aversion (CRRA) intervals 15 among participants was 0.5...
متن کاملMeasuring Risk Aversion with Lists: A New Bias
Various experimental procedures aimed at measuring individual risk aversion involve a list of pairs of alternative prospects. We first study the widely used method by Holt and Laury (2002), for which we find that the removal of some items from the lists yields a systematic decrease in risk aversion. This bias is quite distinct from other confounds that have been previously observed in the use o...
متن کاملInequality aversion and risk aversion
This note shows that for two inequality averse social welfare functions, if one is more inequality averse than the other, the household preference induced by optimally allocating aggregate bundles according to this social welfare function is more risk averse than the other. We present examples showing that this comparative static can be reversed if inequality aversion is dropped. We show that t...
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ژورنال
عنوان ژورنال: Foundations and Trends® in Microeconomics
سال: 2006
ISSN: 1547-9846,1547-9854
DOI: 10.1561/0700000006