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Risk aversion in the large and in the small

Author

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  • Haug, Jørgen
  • Hens, Thorsten
  • Woehrmann, Peter

Abstract

Estimates of agents’ risk aversion differ between market studies and experimental studies. We demonstrate that these estimates can be reconciled through consistent treatment of agents’ propensity for narrow framing.

Suggested Citation

  • Haug, Jørgen & Hens, Thorsten & Woehrmann, Peter, 2013. "Risk aversion in the large and in the small," Economics Letters, Elsevier, vol. 118(2), pages 310-313.
    • Handle: RePEc:eee:ecolet:v:118:y:2013:i:2:p:310-313
    DOI: 10.1016/j.econlet.2012.11.013
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    2. Iryna Veryzhenko, 2021. "Who gains and who loses on stock markets? Risk preferences and timing matter," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 28(2), pages 143-155, April.
    3. Meng Zhao & Xinyuan Shen & Huchang Liao & Mingyao Cai, 2022. "Selecting products through text reviews: An MCDM method incorporating personalized heuristic judgments in the prospect theory," Fuzzy Optimization and Decision Making, Springer, vol. 21(1), pages 21-44, March.

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    More about this item

    Keywords

    Risk aversion; Narrow framing; Laboratory experiments; Market studies;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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