The nature of inconsistencies in two measures of risk preferences in a sample of young African South Africans

Zachary Ezra Cohen and Aylit Tina Romm

Cogent Economics & Finance, 2022, vol. 10, issue 1, 2101995

Abstract: In this paper, we attempt to unpack the nature of revealed inconsistencies in two measures of risk preferences for a sample of young African South Africans. The first measure is a self-reported propensity to take risk in general, and the second is a risk preference elicited through a hypothetical financial gamble. We find that the majority of individuals are inconsistent in their responses that provide these two measures of risk preferences with the majority of contradictions coming from individuals reporting themselves as risk seeking, when their revealed risk preferences from the hypothetical gamble show them to be risk averse. Our results suggest that such inconsistencies are more prevalent amongst males, and amongst females with greater mathematical ability.

Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/23322039.2022.2101995 (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:oaefxx:v:10:y:2022:i:1:p:2101995

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/OAEF20

DOI: 10.1080/23322039.2022.2101995

Access Statistics for this article

Cogent Economics & Finance is currently edited by Steve Cook, Caroline Elliott, David McMillan, Duncan Watson and Xibin Zhang

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