Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/37396
Authors: 
Maier, Johannes
Rüger, Maximilian
Year of Publication: 
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

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