EconStor >
Verein für Socialpolitik >
Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/37396
  
Title:A Note on Measuring Risk Aversion PDF Logo
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: Ökonomie der Familie

Files in This Item:
File Description SizeFormat
VfS_2010_pid_1089.pdf292.89 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/37396

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.