Evaluating Lotteries, Risks, and Risk-mitigation Programs

Mei Wang (meiwang@sfb504.uni-mannheim.de) and Paul Fischbeck (pf12@andrew.cmu.edu)
Additional contact information
Mei Wang: Sonderforschungsbereich 504, Postal: L 13, 15, D-68131 Mannheim
Paul Fischbeck: Carnegie Mellon University, Social and Decision Science Department, Postal: PH208 Porter Hall, Carnegie Mellon Universtiy, Pittsburgh 15213, USA

No 04-13, Sonderforschungsbereich 504 Publications from Sonderforschungsbereich 504, Universität Mannheim, Sonderforschungsbereich 504, University of Mannheim

Abstract: Two experiments were designed to explore the existence of systematic differences in risk perceptions and risk attitudes between Chinese and U.S. participants. The first experiment involved ranking monetary lotteries using measures of perceived riskiness and WTP. Several simple heuristics were evaluated to predict perceived riskiness and WTP. Using WTP responses, cumulative prospect theory functions were determined for participants from both countries. Compared to their U.S. counterparts, Chinese participants are found to be less risk averse and to have higher within group agreement for each task. The second experiment involved ranking real-world risks and associated risk-mitigation programs using measures of concern and preference, respectively. Conjoint analysis reveals additional cultural differences in the perception and evaluation of multi-attribute risks and risk-mitigation programs. The cross-cultural versus cross-task variation are discussed.

Pages: 41 pages
Date: 2004-04-05
Note: Financial support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, is gratefully acknowledged.
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sfb504.uni-mannheim.de/publications/dp04-13.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.sfb504.uni-mannheim.de:80 (nodename nor servname provided, or not known)

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:xrs:sfbmaa:04-13

Ordering information: This working paper can be ordered from
office@sfb504.uni-mannheim.de

Access Statistics for this paper

More papers in Sonderforschungsbereich 504 Publications from Sonderforschungsbereich 504, Universität Mannheim Contact information at EDIRC., Sonderforschungsbereich 504, University of Mannheim
Bibliographic data for series maintained by Carsten Schmidt (none@repec.org this e-mail address is bad, please contact repec@repec.org).