Abstract We analyze the impact of acute stress on risky choice in a pre-registered laboratory experiment with 194 participants. test causal stability risk preferences by separating noise decision-making from an actual shift preferences. find no significant differences attitudes across conditions aggregate, using both descriptive analyses as well structural estimations for aversion and different...

I decision making under risk involves two dimensions: time preferences and risk preferences. This paper focuses on the impact of time on risk preferences, independent of the intertemporal trade-off of outcomes, i.e., time preferences. It reports the results of an experimental study that examines how delayed resolution and payment of risky options influence individual choice. We used a simple ex...

Previous tests of efficient risk sharing have assumed that households have identical risk preferences. This assumption is equivalent to the restriction that households can pool their resources, but cannot optimally allocate them according to individual risk preferences. In this paper, we first test the hypothesis of homogeneous risk preferences and reject it. This result implies that previous t...

Many households devote a large fraction of their budgets to “consumption commitments” – goods that involve transaction costs and are infrequently adjusted. This paper characterizes risk preferences in an expected utility model with commitments. We show that commitments a¤ect risk preferences in two ways: (1) they amplify risk aversion with respect to moderate-stake shocks and (2) they create a ...

We consider cheap talk by a biased expert comparing multiple issues, e.g., discussion of different spending proposals by an industry lobbyist, evaluation of different stocks by a sell-side analyst, or analysis of different topics by a biased newspaper. When the expert’s motives are sufficiently transparent, we find that cheap talk is credible and influential even when the expert strongly favors...