Risky Choice in the Limelight
| Autor: | Martijn J. van den Assem, Guido Baltussen, Dennie van Dolder |
|---|---|
| Přispěvatelé: | Finance, Business Economics, Erasmus School of Economics |
| Jazyk: | angličtina |
| Rok vydání: | 2016 |
| Předmět: |
Limelight
Economics and Econometrics 050208 finance Natural experiment Risk aversion 05 social sciences Risk behavior Ambiguity aversion law.invention Microeconomics law Prospect theory 0502 economics and business Economics Operations management 050207 economics Risk taking Social Sciences (miscellaneous) Expected utility hypothesis Anonymity |
| Zdroj: | Baltussen, G, van den Assem, M J & van Dolder, D 2016, ' Risky Choice in the Limelight ', Review of Economics and Statistics, vol. 98, no. 2, pp. 318-332 . https://doi.org/10.1162/REST_a_00505 Review of Economics and Statistics, 98(2), 318-332. MIT Press Journals The Review of Economics and Statistics, 98(2), 318-332. MIT Press Journals |
| ISSN: | 0034-6535 |
| DOI: | 10.2139/ssrn.2057134 |
| Popis: | This paper examines how risk behavior in the limelight differs from that in anonymity. In two separate experiments, we find that subjects are more risk averse in the limelight. However, risky choices are similarly path dependent in the different treatments. Under both limelight and anonymous laboratory conditions, a simple prospect theory model with a path-dependent reference point provides a better explanation for subjects' behavior than a flexible specification of expected utility theory. In addition, our findings suggest that ambiguity aversion depends on being in the limelight, that passive experience has little effect on risk taking, and that reference points are determined by imperfectly updated expectations. |
| Databáze: | OpenAIRE |
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