Do the Wealthy Risk More Money? An Experimental Comparison

Antoni Bosch-Domènech () and Joaquim Silvestre ()
Additional contact information
Antoni Bosch-Domènech: Universitat Pompeu Fabra
Joaquim Silvestre: University of California

Chapter 6 in Institutions, Equilibria and Efficiency, 2006, pp 95-116 from Springer

Abstract: Summary Are poor people more or less likely to take money risks than wealthy folks? We find that risk attraction is more prevalent among the wealthy when the amounts of money at risk are small (not surprising, since ten dollars is a smaller amount for a wealthy person than for a poor one), but, interestingly, for the larger amounts of money at risk the fraction of the nonwealthy displaying risk attraction actually exceeds that of the wealthy. We also replicate our previous finding that many people display risk attraction for small money amounts, but risk aversion for large ones.

Keywords: Risk attraction; Risk aversion; Wealth; Experiments (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (15)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:steccp:978-3-540-28161-0_6

Ordering information: This item can be ordered from
http://www.springer.com/9783540281610

DOI: 10.1007/3-540-28161-4_6

Access Statistics for this chapter

More chapters in Studies in Economic Theory from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().