WHO REALLY WANTS TO BE A MILLIONAIRE? ESTIMATES OF RISK AVERSION FROM GAMESHOW DATA

Roger Hartley, Gauthier Lanot and Ian Walker ()

Journal of Applied Econometrics, 2014, vol. 29, issue 6, 861-879

Abstract: SUMMARY This paper estimates the degree of risk aversion from one of the most popular TV gameshows ever. The format of the show is straightforward; it involves no strategic decision making; we have a large number of observations; and the prizes are cash, which is paid immediately and covers a large range: from £100 up to £1 million. We provide non‐parametric estimates of the utility function and then we test some parametric restrictions. We find that, although the restriction to CRRA utility is statistically rejected, a log function approximates the utility function quite well over a large range of potential winnings. Copyright © 2013 John Wiley & Sons, Ltd.

Date: 2014
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Related works:
Working Paper: Who really wants to be a millionaire? Estimates of risk aversion from gameshow data (2006)
Working Paper: Who Really Wants to be a Millionaire? Estimates of Risk Aversion from Gameshow Data (2006)
Working Paper: Who really wants to be a millionaire? Estimates of risk aversion from gameshow data (2006)
Working Paper: Who really wants to be a millionaire? Estimates of risk aversion from gameshow data (2006)
Working Paper: Who Really Wants to be a Millionaire? Estimates of Risk Aversion from Gameshow Data (2005)
Working Paper: Who Really Wants to be a Millionaire: Estimates of Risk Aversion from Game Show Data (2005)
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