نتایج جستجو برای: aversion
تعداد نتایج: 12268 فیلتر نتایج به سال:
We develop a tractable method to estimate multiple prior models of decision-making under ambiguity. In a representative sample of the U.S. population, we measure ambiguity attitudes in the gain and loss domains. We find that ambiguity aversion is common for uncertain events of moderate to high likelihood involving gains, but ambiguity seeking prevails for low likelihoods and for losses. We show...
Classically, risk aversion is equated with concavity of the utility function. In this paper we explore the conceptual foundations of this definition. In accordance with neo-classical economics, we seek a scale-free definition of risk aversion, based on the decisions maker’s preference order alone, independent of numerical values. We explore two such definitions. We then show that when cast in q...
Many subjects in lab experiments show considerable risk aversion in small-stakes gambles. This is counter to the predictions of expected utility theory for any reasonable degree of risk aversion (Rabin 2000) but is consistent with loss aversion in prospect theory. Benjamin, Brown, and Shapiro (forthcoming) show that math skills reduce small-stakes risk aversion, consistent with broader evidence...
Uncertainty has an almost negligible impact on project value in the standard economic model. I show that a comprehensive evaluation of uncertainty and uncertainty attitude changes this picture fundamentally. The illustration of this result relies on the discount rate, which is the crucial determinant in balancing immediate costs against future benefits, and the single most important determinant...
Previous studies on the effect of CS amount/duration on the conditioning of taste aversion have reported that animals having greater contact with the CS acquire greater aversion. These findings appear to contradict studies of es preexposure, which show that greater contact with the CS results in less aversion. In the present research, the effect of CS amount was shown to depend on the CS-US int...
The classic definition of risk aversion, which equates risk aversion with concavity of the utility function, is inherently scale-dependent, in the sense that it is not preserved under monotone (non-linear) transformations of underlying scale, most commonly taken to be money. This limits the notion to monetary, or liquid, goods. We introduce an axiomatic definition of risk aversion, based on the...
Risk aversion is a common behavior universal to humans and animals alike. Economists have traditionally defined risk preferences by the curvature of the utility function. Psychologists and behavioral economists also make use of concepts such as loss aversion and probability weighting to model risk aversion. Neurophysiological evidence suggests that loss aversion has its origins in relatively an...
Both the equity premium puzzle and the credit spread puzzle address the problem of a reasonable size of agents’ risk aversion. The empirical estimation of risk aversion parameters is impeded by the fact that observed prices depend on risk preferences and probability beliefs. The market for German redemption lottery bonds constitutes a clean environment to estimate risk aversion coefficients fro...
This paper studies comparative risk aversion between risk averse agents in the presence of a background risk. Although the literature covers this question extensively, our contribution differs from most of the literature in two respects. First, background risk does not need to be additive or multiplicative. Second, the two risks are not necessary mean independent, and may be conditional expecta...
This paper reports data from three subject pools (n=717 subjects) using techniques based on those of Loewenstein, et al. (1989) and Blanco, et al. (2011) to obtain parameters, respectively, of stated and revealed inequality aversion. We provide a replication opportunity for those papers, with two innovations: (i) a design which allows stated and revealed preferences to be compared at the indivi...
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