The formation of risk preferences through small-scale events

Arbeitspapier

Large, macroeconomic shocks in the past have been shown to influence economic decisions in the present. We study in an experiment with 743 subjects whether small-scale, seemingly negligible, events also affect the formation of risk preferences. In line with a reinforcement learning model, we find that subjects who won a random lottery took significantly more risk in a second lottery almost a year later. The same pattern emerges in another experiment with 136 subjects where the second lottery was played more than three years after the first lottery. So, small-scale, random, events affect the formation of risk preferences significantly.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Papers in Economics and Statistics ; No. 2021-24

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Design of Experiments: Laboratory, Individual ; Microeconomic Behavior: Underlying Principles ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
• Thema: Reinforcement learning ; risk preferences ; preference formation ; experiment

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Angerer, Silvia ; Dutcher, E. Glenn ; Glätzle-Rützler, Daniela ; Lergetporer, Philipp ; Sutter, Matthias
• Ereignis: Veröffentlichung
• (wer): University of Innsbruck, Research Platform Empirical and Experimental Economics (eeecon)
• (wo): Innsbruck
• (wann): 2021

Weitere Informationen

• Handle: http://hdl.handle.net/10419/240452
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ