Reflection for Higher Order Risk Preferences

Higher - order Risk Preferences in Social Settings

We study higher-order risk preferences, i.e. prudence and temperance, next to risk aversion in social settings. Previous experimental studies have shown that higherorder risk preferences aff ect the choices of individuals deciding privately on lotteries that only aff ect their own pay-off . Yet, most risky and fi nancially relevant decisions in the fi eld are made in the social settings of hous...

Moment characterization of higher-order risk preferences

Higher - Order Risk Preferences Consequences for Test and Treatment Thresholds and Optimal Cutoff s # 287

Higher-order risk attitudes include risk aversion, prudence, and temperance. This paper analyzes the eff ects of such preferences on medical test and treatment decisions, represented either by test and treatment thresholds or – if the test characteristics are endogenous – by the optimal cutoff value for testing. For a risk-averse decision maker, treatment is a risk reducing strategy since it pr...

Basel Regulatory Framework and a Theoretical and an Experimental Investigation of Higher-Order Risk Preferences

Stronger measures of higher-order risk attitudes

This paper aims to extend the results by Ross [15] and by Modica and Scarsini [13] to stochastic dominance of degree 4 and over. Specifically, it is shown that Ross’ approach can be extended to any order of risk attitude beyond the generalization proposed by Modica and Scarsini by means of sth degree increase in risk defined by Ekern [8].