Incentive Effects on Risk Attitude in Small Probability Prospects

[en] We report between-subject results on the effect of monetary stakes on risk attitudes. While we find the typical risk seeking for small probabilities, risk seeking is reduced under high stakes. This suggests that utility is not consistently concave.

Disciplines :

Microeconomics

Author, co-author :

Lefebvre, Mathieu ; Université de Liège - ULiège > HEC-Ecole de gestion : UER > Economie politique et finances publiques

Vieider, Ferdinand

Villeval, Marie Claire

Language :

English

Title :

Incentive Effects on Risk Attitude in Small Probability Prospects

Publication date :

November 2010

Journal title :

Economics Letters

ISSN :

0165-1765

eISSN :

1873-7374

Publisher :

Elsevier Science

Volume :

109

Issue :

Peer reviewed :

Peer Reviewed verified by ORBi

Available on ORBi :

since 11 October 2010

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Bibliography

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