Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/185460
Authors: 
Chapman, Jonathan
Snowberg, Erik
Wang, Stephanie
Camerer, Colin
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper 7262
Abstract: 
We introduce DOSE - Dynamically Optimized Sequential Experimentation - and use it to estimate individual-level loss aversion in a representative sample of the U.S. population (N = 2,000). DOSE elicitations are more accurate, more stable across time, and faster to administer than standard methods. We find that around 50% of the U.S. population is loss tolerant. This is counter to earlier findings, which mostly come from lab/student samples, that a strong majority of participants are loss averse. Loss attitudes are correlated with cognitive ability: loss aversion is more prevalent in people with high cognitive ability, and loss tolerance is more common in those with low cognitive ability. We also use DOSE to document facts about risk and time preferences, indicating a high potential for DOSE in future research.
Subjects: 
dynamic experiments
DOSE
loss aversion
risk preferences
time preferences
JEL: 
C81
C90
D81
D90
Document Type: 
Working Paper
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