Experiments On Risk Perception And Investment Decisions Of Economic Actors

In a simple simulated experiment we compare the risk perception and risk taking of participants to the concept of coherent risk measures. Using a sample of 50 participants the aim of our preliminary research is to test the defined experimental environment and define the further directions of its development. Using simulated financial positive homogeneity, subadditivity and monotonicity are perceived by the participants. Translation invariance is applied only by half of the sample. Capital allocation between risky and risk free asset highly correlates with price changes in the most risk averse group of participants. The most risk taking part of the sample followed a strategy to reallocate their gains from risky asset to the risk free one and reorganized their portfolio less frequently but by larger amounts. The behavior of medium risk taker/risk averse participants has to be tested in a more detailed research.