Arbeitspapier
Allais for the poor
This paper complements evidence on the Allais paradox from advanced countries and educated people by a novel investigation in a poor rural area. The share of Allais-type behavior is indeed high and related to characteristics of 'lacking ability', such as poor education, unemployment, and little financial sophistication. Based on prospective reference theory, we extend these characteristics by biased processing of probabilistic information. Finally, we reveal that Allais-type behavior is linked to risk-related characteristics, such as risk tolerance and optimism. This indicates a potential problem as exactly the more dynamic among the poor tend to make inconsistent decisions under uncertainty.
- Sprache
-
Englisch
- Erschienen in
-
Series: Kiel Working Paper ; No. 2036
- Klassifikation
-
Wirtschaft
Criteria for Decision-Making under Risk and Uncertainty
Economic Development: General
- Thema
-
field experiments
Allais paradox
socio-demographic characteristics
prospective reference theory
first order stochastic dominance
risk attitude
optimism
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Herrmann, Tabea
Hübler, Olaf
Menkhoff, Lukas
Schmidt, Ulrich
- Ereignis
-
Veröffentlichung
- (wer)
-
Kiel Institute for the World Economy (IfW)
- (wo)
-
Kiel
- (wann)
-
2016
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
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.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Herrmann, Tabea
- Hübler, Olaf
- Menkhoff, Lukas
- Schmidt, Ulrich
- Kiel Institute for the World Economy (IfW)
Entstanden
- 2016
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