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Incentive effects on risk attitude in small probability prospects

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Lefebvre, M., Vieider, F. M. and Villeval, M. C. (2010) Incentive effects on risk attitude in small probability prospects. Economics Letters, 109 (2). pp. 115-120. ISSN 0165-1765 doi: 10.1016/j.econlet.2010.09.002

Abstract/Summary

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.

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Item Type Article
URI https://reading-clone.eprints-hosting.org/id/eprint/46530
Identification Number/DOI 10.1016/j.econlet.2010.09.002
Refereed Yes
Divisions Arts, Humanities and Social Science > School of Politics, Economics and International Relations > Economics
Publisher Elsevier
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