Investing versus gambling: experimental evidence of multi-domain risk attitudes

Cary Deck (), Jungmin Lee and Javier Reyes

Applied Economics Letters, 2014, vol. 21, issue 1, 19-23

Abstract: Economists have noted the empirical regularity that an individual's attitude towards risk is not constant across elicitation settings. Such a pattern is conceptually consistent with the argument in psychology that risk is domain specific. To explore this view, we frame a common risk elicitation tool in laboratory experiments as both a gambling game and an investment opportunity. A survey instrument used to measure one's attitudes towards risks on different domains is found to explain partially within-subject variation in observed behaviour between the two tasks. The evidence presented in this article demonstrates the need to consider more nuanced approaches to modelling risk.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2013.835470 (text/html)
Access to full text is restricted to subscribers.

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:taf:apeclt:v:21:y:2014:i:1:p:19-23

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2013.835470

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().