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Measuring Risk Attitudes Controlling for Personality Traits

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Author Info

  • Jungmin Lee

    ()
    (Department of Economics, Florida International University)

  • Cary Deck

    ()
    (Department of Economics, University of Arkansas)

  • Javier Reyes

    ()
    (Department of Economics, University of Arkansas)

  • Chris Rosen

    ()
    (Department of Management, University of Arkansas)

Abstract

This study measures risk attitudes using two paid experiments: the Holt and Laury (2002) procedure and a variation of the game show Deal or No Deal. The participants also completed a series of personality questionnaires developed in the psychology literature including the risk domains of Weber, Blais, and Betz (2002). As in previous studies risk attitudes vary within subjects across elicitation methods. However, this variation can be explained by individual personality traits. Specifically, subjects behave as though the Holt and Laury task is an investment decision while the Deal or No Deal task is a gambling decision.

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File URL: http://casgroup.fiu.edu/pages/docs/2249/1275227493_08-01.pdf
File Function: Revised version, 2008
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Bibliographic Info

Paper provided by Florida International University, Department of Economics in its series Working Papers with number 0801.

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Length: 29 pages
Date of creation: Jan 2008
Date of revision:
Handle: RePEc:fiu:wpaper:0801

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Web page: http://casgroup.fiu.edu/Economics/
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Related research

Keywords: Risk Attitudes; Risk Taking Behavior; Personality Traits; Laboratory Experiments.;

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References

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Citations

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Cited by:
  1. Arnaud Reynaud & Stéphane Couture, 2012. "Stability of risk preference measures: results from a field experiment on French farmers," Theory and Decision, Springer, vol. 73(2), pages 203-221, August.
  2. Stefan Zeisberger & Dennis Vrecko & Thomas Langer, 2012. "Measuring the time stability of Prospect Theory preferences," Theory and Decision, Springer, vol. 72(3), pages 359-386, March.
  3. Peter Duersch & Maroš Servátka, 2009. "Punishment with Uncertain Outcomes in the Prisoner’s Dilemma," Working Papers 0485, University of Heidelberg, Department of Economics.
  4. Botti, Fabrizio & Conte, Anna & Di Cagno, Daniela & D'Ippoliti, Carlo, 2009. "Lab and framed lab versus natural experiments: Evidence from a risky choice experiment," Research in Economics, Elsevier, vol. 63(4), pages 282-295, December.
  5. Lisa Anderson & Jennifer Mellor, 2009. "Are risk preferences stable? Comparing an experimental measure with a validated survey-based measure," Journal of Risk and Uncertainty, Springer, vol. 39(2), pages 137-160, October.
  6. Leuermann, Andrea & Necker, Sarah, 2011. "Intergenerational transmission of risk attitudes: A revealed preference approach," Freiburg Discussion Papers on Constitutional Economics 11/4, Walter Eucken Institut e.V..
  7. Maart, Syster Christin & Musshoff, Oliver & Ewald, Jorn, 2012. "Ermittlung Der Individuellen Risikoeinstellung: Vergleich Verschiedener Methoden Und Personengruppen," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137384, German Association of Agricultural Economists (GEWISOLA).
  8. Andrea Leuermann & Sarah Necker, 2011. "Intergenerational Transmission of Risk Attitudes: A Revealed Preference Approach," SOEPpapers on Multidisciplinary Panel Data Research 412, DIW Berlin, The German Socio-Economic Panel (SOEP).
  9. Musshoff, Oliver & Maart-Noelck, Syster Christin, 2014. "An experimental analysis of the behavior of forestry decision-makers — The example of timing in sales decisions," Forest Policy and Economics, Elsevier, vol. 41(C), pages 31-39.
  10. Uwe Dulleck & Jacob Fell & Jonas Fooken, 2011. "Within-subject Intra- and Inter-method consistency of two experimental risk attitude elicitation," NCER Working Paper Series 74, National Centre for Econometric Research.

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