We analyze workers’ risk preferences and training investments. Our conceptual framework differentiates between the investment insurance mechanisms underpinning decisions. Investment leads risk-averse workers to train less; they undertake more if it insures them against future losses. use German Socio-Economic Panel (SOEP) demonstrate that affinity is associated with training, implying that, on ...

This paper presents a simulation, made with a genetic algorithm (GA), in order to shape risk attitudes in a very simple environment of lotteries such as the Machina triangle. GA models the process of learning and imitation from successful traders in real world economics in a satisfactory way. An overlapping generations case is used where bankrupted agents exit the market and are replaced by new...

Abstract Do people know their own risk preferences, or do choices change with experience and observation? We provide a straightforward test in the laboratory. People make an initial decision concerning lottery choice then 24 unpaid practice periods which they roll dice, record outcome, would-be payoff. They final for choice; one of first last is randomly chosen payment. Our primary hypothesis t...