Averting risk in the face of large losses: Bernoulli vs. Tversky and Kahneman

C-Tier
Journal: Economics Letters
Year: 2010
Volume: 107
Issue: 2
Pages: 180-182

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

Prospect Theory asserts that people display risk attraction in high-probability losses. But our subjects tend to avoid fair risks for large ([euro]30 to [euro]90), high-probability (80%) real losses, vindicating Bernoulli's view that risk aversion is the dominant attitude.

Technical Details

RePEc Handle
repec:eee:ecolet:v:107:y:2010:i:2:p:180-182
Journal Field
General
Author Count
2
Added to Database
2026-01-24