Arbeitspapier
Variation in risk seeking behavior in a natural experiment on large losses induced by a natural disaster
This study explores people's risk attitudes after having suffered large real-world losses following a natural disaster. Using the margins of the 2011 Australian floods (Brisbane) as a natural experimental setting, we find that homeowners who were victims of the floods and face large losses in property values are 50% more likely to opt for a risky gamble {a scratch card giving a small chance of a large gain ($500,000) {than for a sure amount of comparable value ($10). This finding is consistent with prospect theory predictions of the adoption of a risk-seeking attitude after a loss.
- Language
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Englisch
- Bibliographic citation
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Series: Nota di Lavoro ; No. 54.2012
- Classification
-
Wirtschaft
Criteria for Decision-Making under Risk and Uncertainty
Field Experiments
- Subject
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Decision under Risk
Large Losses
Natural Experiment
- Event
-
Geistige Schöpfung
- (who)
-
Page, Lionel
Savage, David
Torgler, Benno
- Event
-
Veröffentlichung
- (who)
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Fondazione Eni Enrico Mattei (FEEM)
- (where)
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Milano
- (when)
-
2012
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Page, Lionel
- Savage, David
- Torgler, Benno
- Fondazione Eni Enrico Mattei (FEEM)
Time of origin
- 2012
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