Arbeitspapier

Higher Order Risk Preferences: New Experimental Measures, Determinants and Field Behavior

We use a novel method to elicit and measure higher order risk preferences (prudence and temperance) in an experiment with 658 adolescents. In line with theoretical predictions, we find that higher order risk preferences particularly prudence are strongly related to adolescents' field behavior, including their financial decision making, eco-friendly behavior, and health status, including addictive behavior. Most importantly, we show that dropping prudence and temperance from the analysis of students' field behavior would yield largely misleading conclusions about the relation of risk aversion to these domains of field behavior. Thus our paper puts previous work that ignored higher order risk preferences into an encompassing perspective and clarifies which orders of risk preferences can help understand field behavior of adolescents.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 8544

Klassifikation
Wirtschaft
Field Experiments
Criteria for Decision-Making under Risk and Uncertainty
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Fertility; Family Planning; Child Care; Children; Youth
Thema
higher order risk preferences
prudence
temperance
risk aversion
field behavior
adolescents
health
addictive behavior
smartphone addiction
experiment

Ereignis
Geistige Schöpfung
(wer)
Schneider, Sebastian O.
Sutter, Matthias
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and Ifo Institute (CESifo)
(wo)
Munich
(wann)
2020

Handle
Letzte Aktualisierung
20.09.2024, 08:22 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Schneider, Sebastian O.
  • Sutter, Matthias
  • Center for Economic Studies and Ifo Institute (CESifo)

Entstanden

  • 2020

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