Experiments on bivariate risk preferences

Konferenzbeitrag

We study cross-risk preferences over wealth and two other attributes to obtain theory-free evidence on correlation aversion as well as higher-order cross-traits like cross-prudence and cross-temperance. Two experiments elicit the dependence structure of risk preferences between wealth and, respectively, waiting time and someone else's wealth. The latter experiment, which could be called ``risk preferences for you, me, and us'', connects bivariate risk preferences with (higher-order) inequality aversion. This first systematic exploration of bivariate risk attitudes helps assess the appropriateness of assumptions in economic models on health prevention, inequality, saving, or insurance.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2015: Ökonomische Entwicklung - Theorie und Politik - Session: Risk Preferences and Loss Aversion ; No. E24-V2

Classification and Topics

• Classification: Wirtschaft ; Microeconomic Behavior: Underlying Principles ; Criteria for Decision-Making under Risk and Uncertainty ; Design of Experiments: General

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ebert, Sebastian ; van de Kuilen, Gijs
• Event: Veröffentlichung
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/113055
• Last update: 10.03.2025, 11:44 AM CET