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A failed attempt to explain within subject variation in risk taking behavior using domain specific risk attitudes

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  • Deck, Cary
  • Lee, Jungmin
  • Reyes, Javier A.
  • Rosen, Christopher C.

Abstract

Previous research has found considerable variation in risk taking behavior within individuals across tasks. In this paper, we develop a hypothesis derived from the psychology literature that such apparently inconsistent behavior can be explained by a subject's domain specific risk attitudes. To test our hypothesis, we conducted a laboratory study using multiple paid risk elicitation tasks and a risk attitude survey. Consistent with previous research, our results indicated considerable within subject variation in behavior across tasks. However, we found little support for the hypothesis that this variation can be explained by domain specific risk attitudes.

Suggested Citation

  • Deck, Cary & Lee, Jungmin & Reyes, Javier A. & Rosen, Christopher C., 2013. "A failed attempt to explain within subject variation in risk taking behavior using domain specific risk attitudes," Journal of Economic Behavior & Organization, Elsevier, vol. 87(C), pages 1-24.
  • Handle: RePEc:eee:jeborg:v:87:y:2013:i:c:p:1-24
    DOI: 10.1016/j.jebo.2012.11.010
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    More about this item

    Keywords

    Risk attitudes; Risk taking behavior; Personality traits; Laboratory experiments;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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