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dc.contributor.authorBooij, Adam S.en_US
dc.contributor.authorvan Praag, Bernard M. S.en_US
dc.contributor.authorvan de Kuilen, Gijsen_US
dc.date.accessioned2009-05-06en_US
dc.date.accessioned2010-07-07T11:53:57Z-
dc.date.available2010-07-07T11:53:57Z-
dc.date.issued2009en_US
dc.identifier.piurn:nbn:de:101:1-20090513140en_US
dc.identifier.urihttp://hdl.handle.net/10419/35614-
dc.description.abstractThis paper presents the results of an experiment that completely measures the utility function and probability weighting function for different positive and negative monetary outcomes, using a representative sample of N = 1935 from the general public. The results confirm earlier findings in the lab, suggesting that utility is less pronounced than what is found in classical measurements where expected utility is assumed. Utility for losses is found to be convex, consistent with diminishing sensitivity, and the obtained loss aversion coefficient of 1.6 is moderate but in agreement with contemporary evidence. The estimated probability weighing functions have an inverse-S shape and they imply pessimism in both domains. These results show that probability weighting is also an important phenomenon in the general population. Women and lower educated individuals are found to be more risk averse, in agreement with common findings. Unlike previous studies that ascribed gender differences in risk attitudes solely to differences in the degree utility curvature, however, our results show that this finding is primarily driven by loss aversion and, for women, also by a more pessimistic psychological response towards the probability of obtaining the best possible outcome.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesIZA discussion papers 4117en_US
dc.subject.jelD81en_US
dc.subject.jelC91en_US
dc.subject.jelC93en_US
dc.subject.ddc330en_US
dc.subject.keywordProspect theoryen_US
dc.subject.keywordutility for gains and lossesen_US
dc.subject.keywordloss aversionen_US
dc.subject.keywordsubjective probability weightingen_US
dc.subject.stwProspect Theoryen_US
dc.subject.stwErwartungsnutzenen_US
dc.subject.stwRisikopräferenzen_US
dc.subject.stwTesten_US
dc.subject.stwGeschlechten_US
dc.subject.stwBildungsniveauen_US
dc.titleA parametric analysis of prospect theory's functionals for the general populationen_US
dc.typeWorking Paperen_US
dc.identifier.ppn599231874en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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