Inference Under Stability of Risk Preferences

Inference under Stability of Risk Preferences∗

We leverage the assumption that preferences are stable across contexts to partially identify and conduct inference on the parameters of a structural model of risky choice. Working with data on households’deductible choices across three lines of insurance coverage and a model that nests expected utility theory plus a range of non-expected utility models, we perform a revealed preference analysis...

Characterization of Finitely Generated Preferences Under Risk . ∗

Social Preferences under Risk - An Experimental Analysis

The literature on social preferences provides overwhelming evidence of departures from pure self-interest of individuals. Experiments show that people care about others’ well-being and their relative standing. This paper investigates whether this type of behavior persists when risk comes into play. I devise an experiment which sheds light on the interrelation of risk and social preferences by m...

Rational inference of relative preferences

Statistical decision theory axiomatically assumes that the relative desirability of different options that humans perceive is well described by assigning them optionspecific scalar utility functions. However, this assumption is refuted by observed human behavior, including studies wherein preferences have been shown to change systematically simply through variation in the set of choice options ...

Ponti Social vs . risk preferences under the veil of ignorance

This paper reports experimental evidence from a Dictator Game experiment in which subjects choose repeatedly one out of four options involving a pair of fixed monetary prizes, one for them, one for another anonymously matched subject. In some sessions, player position (i.e. the identity of the best paid agent, constant across all options) is known in advance before subjects have to make their d...