The Formation of Risk Preferences Through Small-Scale Events

Large, macroeconomic shocks in the past have been shown to influence economic decisions present. We study an experiment with 743 subjects whether small-scale, seemingly negligible, events also affect formation of risk preferences. In line a reinforcement learning model, we find that who won random lottery took significantly more second almost year later. The same pattern emerges another 136 where was played than three years after first lottery. So, random, preferences significantly.