How General Are Risk Preferences? Choices under Uncertainty in Different Domains

S-Tier
Journal: American Economic Review
Year: 2012
Volume: 102
Issue: 6
Pages: 2606-38

Authors (4)

Score contribution per author:

2.011 = (α=2.01 / 4 authors) × 4.0x S-tier

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

Abstract

We analyze the extent to which individuals' choices over five employer-provided insurance coverage decisions and one 401(k) investment decision exhibit systematic patterns, as would be implied by a general utility component of risk preferences. We provide evidence consistent with an important domain-general component that operates across all insurance choices. We find a considerably weaker relationship between one's insurance decisions and 401(k) asset allocation, although this relationship appears larger for more "financially sophisticated" individuals. Estimates from a stylized coverage choice model suggest that up to 30 percent of our sample makes choices that may be consistent across all 6 domains. (JEL D12, D14, D81, G22, J33)

Technical Details

RePEc Handle
repec:aea:aecrev:v:102:y:2012:i:6:p:2606-38
Journal Field
General
Author Count
4
Added to Database
2026-01-25