Comparative Risk Sensitivity with Reference-Dependent Preferences.

B-Tier
Journal: Journal of Risk and Uncertainty
Year: 2002
Volume: 24
Issue: 2
Pages: 131-42

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

Experimental evidence suggests that individuals are risk averse over gains and risk seeking over losses (i.e., they have S-shaped utility functions in an expected utility setting) and that they are loss averse. Furthermore, the evidence leads to a single definition of S-shaped utility, but it has led to several alternative specifications of loss aversion. This paper characterizes the relations "more S-shaped than" and "more loss averse than" for a utility function, and in so doing arrives at a new definition of loss aversion based on average instead of marginal utility. Copyright 2002 by Kluwer Academic Publishers

Technical Details

RePEc Handle
repec:kap:jrisku:v:24:y:2002:i:2:p:131-42
Journal Field
Theory
Author Count
1
Added to Database
2026-01-26