This paper analyzes, for S-shaped value functions, the relations between loss aversion and perceptionally risk aversion (i.e. computed with the perceived probability weights) in Cumulative Prospect Theory . We show that perceptionally risk aversion for mixed sign lotteries is equivalent to weak (or strong) loss aversion, so this is the right assumption to get a sensible behavior towards risk. T...

The relationships between health, the scientific approach in medicine and concepts of epidemiology underlie theoretical and cultural attitudes of the nature of behavior and health risks. Medical tests that diagnose risk factors are thought to be predictive of disease. Physicians employ these tests to more accurately assess the health of their patients and convince their charges to change their ...

Funding information University of Kentucky, College of Arts and Sciences, Pilot Data Grant Recent studies show a clear link between women in government and reduced concerns about corruption. Until now, it remains unclear which underlying attitudes about women explain the perception that they will reduce corruption. Using a survey question about adding women to a police force, with an embedded e...

Estimates of the willingness to pay (WTP) for a mortality risk reduction can be used to calculate the value of a statistical life, which is a major component in many economic evaluations of environmental and safety policies. Previous research on the WTP for risk reductions using stated preference methods have found that the mean WTP for public risk reductions is significantly smaller compared t...

Objective: To address acknowledged limitations in the effectiveness of sexual and relationship abuse prevention strategies, practitioners have developed new tools that use a bystander framework (Lonsway et al, 2009). Evaluation of bystander-focused prevention requires measures, specific to the bystander approach that assess changes over time in participants’ attitudes and behaviors. Few measure...

In risky decision-making, expected utility (EU) theory is widely used to examine people's risk attitude and choice behavior. However, it is unknown how risk attitude relates to attention and information search. In this paper, we explore the relationship between risk attitude (as measured by a variant of EU) and eye movement patterns (which serve as a proxy for attention and information search)....

The propensity to take risk underpins a wide variety of decision-making behavior, ranging from common ones such as asking for directions and trying out a new restaurant to more substantial economic decisions involving, for instance, one's investment or career. Despite the fundamental role of risk attitude in the economy, its genetic basis remains unknown. Using an experimental economics protoco...

Beef food safety events have contributed to considerable market volatility, produced varied consumer reactions, created policy debates, sparked heated trade disputes, and generally contributed to beef industry frustrations. Utilizing data from a total of 4,005 consumers in the United States, Canada, Mexico and Japan in a Double-Hurdle modeling framework, we examine whether consumers altered the...

This paper investigates the effect of different risk attitudes on the financial decisions of two insiders trading in the stock market. We consider a static version of the Kyle (1985) model with two insiders. Insider 1 is risk neutral while insider 2 is risk averse with negative exponential utility. First, we prove the existence of a unique linear equilibrium. Second, we obtain somewhat surprisi...

We study the effect of changing income on optimal decisions in the multidimensional expected utility framework with strongly separable preferences. Using the Kihlstrom and Mirman (1974) (KM) utility representation, we show that the effect of changing income can be decomposed into a modified income effect linked to the classical income effect and an effect representing attitudes to risk, modifie...