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Simultaneous decisions under risk: An experimental investigation

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  • Banerjee, Priyodorshi
  • Das, Tanmoy

Abstract

Subjects faced two independent portfolio choice problems simultaneously, each requiring an allocation of a budget across one safe and one risky asset. We found that choice for one of these problems could depend on the riskiness of the risky asset in the other. Results are consistent with subjects assessing risk for any problem or portfolios in its feasible set through contrast with risk of the other problem or portfolios in its feasible set.

Suggested Citation

  • Banerjee, Priyodorshi & Das, Tanmoy, 2019. "Simultaneous decisions under risk: An experimental investigation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 82(C).
    • Handle: RePEc:eee:soceco:v:82:y:2019:i:c:s2214804318305007
    DOI: 10.1016/j.socec.2019.101454
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    References listed on IDEAS

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    More about this item

    Keywords

    Portfolio choice; Decision under risk; Simultaneous decisions; Risk contrast;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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