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Investing versus gambling: experimental evidence of multi-domain risk attitudes


  • Cary Deck
  • Jungmin Lee
  • Javier Reyes


Economists have noted the empirical regularity that an individual's attitude towards risk is not constant across elicitation settings. Such a pattern is conceptually consistent with the argument in psychology that risk is domain specific. To explore this view, we frame a common risk elicitation tool in laboratory experiments as both a gambling game and an investment opportunity. A survey instrument used to measure one's attitudes towards risks on different domains is found to explain partially within-subject variation in observed behaviour between the two tasks. The evidence presented in this article demonstrates the need to consider more nuanced approaches to modelling risk.

Suggested Citation

  • Cary Deck & Jungmin Lee & Javier Reyes, 2014. "Investing versus gambling: experimental evidence of multi-domain risk attitudes," Applied Economics Letters, Taylor & Francis Journals, vol. 21(1), pages 19-23, January.
  • Handle: RePEc:taf:apeclt:v:21:y:2014:i:1:p:19-23
    DOI: 10.1080/13504851.2013.835470

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    Cited by:

    1. Golo-Friedrich Bauermeister & Oliver Mußhoff, 2019. "Multiple switching behaviour in different display formats of multiple price lists," Applied Economics Letters, Taylor & Francis Journals, vol. 26(1), pages 58-63, January.
    2. repec:eee:soceco:v:73:y:2018:i:c:p:22-33 is not listed on IDEAS
    3. Dixit, Vinayak V. & Harb, Rami C. & Martínez-Correa, Jimmy & Rutström, Elisabet E., 2015. "Measuring risk aversion to guide transportation policy: Contexts, incentives, and respondents," Transportation Research Part A: Policy and Practice, Elsevier, vol. 80(C), pages 15-34.
    4. repec:eee:soceco:v:68:y:2017:i:c:p:1-12 is not listed on IDEAS
    5. Alessandro Bucciol & Luca Zarri, 2015. "Does Investors' Personality Influence their Portfolios?," Working Papers 03/2015, University of Verona, Department of Economics.

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