Investigating Risky Choices Over Losses Using Experimental Data

B-Tier
Journal: Journal of Risk and Uncertainty
Year: 2005
Volume: 31
Issue: 2
Pages: 187-215

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We conduct a battery of experiments in which agents make choices from several pairs of all-loss-lotteries. Using these choices, we estimate a representation of individual preferences over lotteries. We find statistically and economically significant departures from expected utility maximization for many subjects. We also estimate a preference representation based on summary statistics for behavior in the population of subjects, and again find departures from expected utility maximization. Our results suggest that public policies based on an expected utility approach could significantly underestimate preferences and willingness to pay for risk reduction. Copyright Springer Science + Business Media, Inc. 2005

Technical Details

RePEc Handle
repec:kap:jrisku:v:31:y:2005:i:2:p:187-215
Journal Field
Theory
Author Count
4
Added to Database
2026-01-25