search query: @indexterm RISK BEHAVIOUR / total: 47
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| Author: | Harbaugh, W.T. Krause, K. Vesterlund, L. |
| Title: | The fourfould pattern of risk attitudes in choice and pricing tasks |
| Journal: | Economic Journal
2010 : JUN, VOL 120:545 p. 595-611 |
| Index terms: | risk behaviour prices attitudes motivation research loss |
| Freeterms: | preferences price elicitations |
| Language: | eng |
| Abstract: | In this paper the robustness of the fourfold pattern of risk attitudes under two elicitation procedures is examined. It is found that individuals are, on average, risk-seeking over low-probability gains and high-probability losses and risk-averse over high-probability gains and low-probability losses when we elicit prices for the gambles. However, a choice-based elicitation procedure, where participants choose between a gamble and its expected value, yields individual decisions that are indistinguishable from random choice. Sensitivity to elicitation procedure holds between and within participants, and remains when participants are allowed to review and change decisions. The price elicitation procedure is more complex; this finding may be further evidence that an increase in cognitive load exacerbates behavioural anomalies. |
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