Heterogeneity in risk attitudes across domains: A bivariate random preference approach
Peter Moffatt () and
Additional contact information
Mary Riddel: University of Nevada
No 15-10, Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) from School of Economics, University of East Anglia, Norwich, UK.
In a series of field experiments, we elicit risk preferences for financial, life-duration, and environmental domains using sequential multiple price-list auctions. We intentionally oversample subjects who frequently engage in activities that increase their mortality risk. We analyze the data using a bivariate Random Preference approach. Under the assumption that subjects are Rank Dependent Utility maximizers, we estimate the joint distribution of the CRRA and probability weighting coefficients. We find that the experienced risk takers are less likely than the student control group to overweight small probability, extreme events in their decision making. This is true in all three domains. We find that the tendency of women to be more risk averse in the financial domain than men arises from probability weighting rather than differences in the utility function. Finally, we show that a significant minority of subjects deviate from the type of s-inverse probability weighting typically observed in experiments.
JEL-codes: C91 C93 D0 D12 D81 I12 Q53 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://www.uea.ac.uk/documents/166500/0/CBESS+15- ... 0b-99af-30daae511fbb main text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:uea:wcbess:15-10
Ordering information: This working paper can be ordered from
Reception, School of Economics, University of East Anglia, Norwich Research Park, Norwich, NR4 7TJ, UK
Access Statistics for this paper
More papers in Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) from School of Economics, University of East Anglia, Norwich, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Cara Liggins ().