Moderate stake variations for risk and uncertainty, gains and losses: Methodological implications for comparative studies

C-Tier
Journal: Economics Letters
Year: 2012
Volume: 117
Issue: 3
Pages: 718-721

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

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

Abstract

Risk attitudes are known to be sensitive to large stake variations. However, little is known on the sensitivity to moderate variations in stakes. This is important for studies that want to compare risk attitudes between countries or over time. I find that variations of ±20% affect only utility, while larger variations may affect also probability weighting. Surprisingly, the effect on weighting functions is larger for losses than for gains. It is also more pronounced for risk than for uncertainty.

Technical Details

RePEc Handle
repec:eee:ecolet:v:117:y:2012:i:3:p:718-721
Journal Field
General
Author Count
1
Added to Database
2026-01-29