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Incentive effects on risk attitude in small probability prospects

  • Lefebvre, Mathieu
  • Vieider, Ferdinand M.
  • Villeval, Marie Claire

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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File URL: http://www.sciencedirect.com/science/article/B6V84-511GVKF-2/2/561da4f46d00f41c37f006da9fd4029b
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 109 (2010)
Issue (Month): 2 (November)
Pages: 115-120

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Handle: RePEc:eee:ecolet:v:109:y:2010:i:2:p:115-120
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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