Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/92612
Authors: 
Sasaki, Shunichiro
Xie, Shiyu
Ohtake, Fumio
Qin, Jie
Tsutsui, Yoshiro
Year of Publication: 
2006
Series/Report no.: 
ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 664
Abstract: 
This paper examines Chinese students' risk attitude using buying and selling experiments with lotteries. We found that subjects were more risk averse in the buying experiment than in the selling experiment, suggesting the endowment effect. In the selling experiment, subjects were risk loving when there was a low win probability and risk averse with a high win probability, whereas they were risk averse in the buying experiment. Using the prize money won during the experiment as a measure of wealth, we found decreasing absolute risk aversion. Subjects' risk attitude as revealed in the experiments explains their risky asset holding behavior.
Subjects: 
risk aversion
economic experiment
China
JEL: 
C91
D81
Document Type: 
Working Paper

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