Salience, Risky Choices and Gender

Alison Booth and Patrick Nolen

No 8868, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Risk theories typically assume individuals make risky choices using probability weights that differ from objective probabilities. Recent theories suggest that probability weights vary depending on which portion of a risky environment is made salient. Using experimental data we show that salience affects young men and women differently, even after controlling for cognitive and non-cognitive skills. Men are significantly more likely than women to switch from a certain to a risky choice once the upside of winning is made salient, even though the expected value of the choice remains the same.

Keywords: Gender; Risk-aversion; Probability weights; Cognitive ability (search for similar items in EconPapers)
JEL-codes: D8 D81 J16 (search for similar items in EconPapers)
Date: 2012-02
New Economics Papers: this item is included in nep-exp
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Citations: View citations in EconPapers (13)

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Journal Article: Salience, risky choices and gender (2012)
Working Paper: Salience, Risky Choices and Gender (2012)
Working Paper: Salience, Risky Choices and Gender (2012)
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