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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. 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, Elsevier, vol. 41(C), pages 31-39.
  2. Lisa R. Anderson & Jennifer M. Mellor, 2008. "Are Risk Preferences Stable? Comparing an Experimental Measure with a Validated Survey-Based Measure," Working Papers, Department of Economics, College of William and Mary 74, Department of Economics, College of William and Mary.
  3. Stefan Zeisberger & Dennis Vrecko & Thomas Langer, 2012. "Measuring the time stability of Prospect Theory preferences," Theory and Decision, Springer, Springer, vol. 72(3), pages 359-386, March.
  4. Arnaud Reynaud & Stephane Couture, 2010. "Stability of Risk Preference Measures: Results From a Field Experiment on French Farmers," LERNA Working Papers, LERNA, University of Toulouse 10.10.316, LERNA, University of Toulouse.
  5. Peter Duersch & Maroš Servátka, 2009. "Punishment with Uncertain Outcomes in the Prisoner’s Dilemma," Working Papers 0485, University of Heidelberg, Department of Economics.
  6. 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).
  7. 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..
  8. Uwe Dulleck & Jacob Fell & Jonas Fooken, 2011. "Within-subject Intra- and Inter-method consistency of two experimental risk attitude elicitation," NCER Working Paper Series, National Centre for Econometric Research 74, National Centre for Econometric Research.
  9. 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, German Association of Agricultural Economists (GEWISOLA) 137384, German Association of Agricultural Economists (GEWISOLA).
  10. 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, Elsevier, vol. 63(4), pages 282-295, December.

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