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http://hdl.handle.net/10419/37396
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| Title: | | A Note on Measuring Risk Aversion  |
| Authors: | | Maier, Johannes Rüger, Maximilian |
| Issue Date: | | 2010 |
| Series/Report no.: | | Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Measuring Risk Preferences G6-V2 |
| Abstract: | | In this paper we propose a new method to elicit the intensity of individual's risk preferences. Our method uses a simple multiple price-list format and is based on the increasing risk definitions of Rothschild and Stiglitz (1970, 1971). We are thus able to classify individuals as more or less risk-averse without assuming an expected utility framework. In a lab experiment we directly compare our method to the well-known method of Holt and Laury (2002) and find that our approach yields higher estimates of relative risk aversion that are much closer to what is observed in the field. |
| Subjects: | | Risk Aversion CRRA Multiple Price-List Elicitation Laboratory Experiment |
| JEL: | | D81 C91 D00 |
| Document Type: | | Conference Paper |
| Appears in Collections: | | Jahrestagung des Vereins für Socialpolitik 2010 (Kiel): Ökonomie der Familie
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