The Fourfold Pattern of Risk Attitudes in Choice and Pricing Tasks
Bibliographic Data
| ID | 9708638 |
|---|---|
| Authors | William T Harbaugh (0000-0002-4127-3983, University of Oregon and NBER), Kate Krause (0000-0001-9975-9866, University of New Mexico), Lise Vesterlund (University of Pittsburgh) |
| Year | 2010 |
| Volume | 120 |
| Issue | 545 |
| Pages | 595-611 |
| Publication date | 2010-06-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/j.1468-0297.2009.02312.x |
| OpenAlex | W1898218319 |
| Language | EN |
| Citations received | 12 |
| References cited | 29 |
We examine the robustness of the fourfold pattern of risk attitudes under two elicitation procedures. We find that individuals are, on average, risk-seeking over low-probability gains and high-probability losses and risk-averse over high-probability gains and low-probability losses when we elicit prices for the gambles. However, a choice-based elicitation procedure, where participants choose between a gamble and its expected value, yields individual decisions that are indistinguishable from random choice. Sensitivity to elicitation procedure holds between and within participants, and remains when participants are allowed to review and change decisions. The price elicitation procedure is more complex; this finding may be further evidence that an increase in cognitive load exacerbates behavioural anomalies. Copyright © The Author(s). Journal compilation © Royal Economic Society 2009
Actuarial science · Econometrics · Economics · Robustness (evolution · Statistics · Value (mathematics · Decision-Making and Behavioral Economics · Economic and Environmental Valuation · Experimental Behavioral Economics Studies · Mathematics · Psychology
Forecasting risk attitudes
Eliciting risk preferences
Violence and Risk Preference
Prospect theory in multiple price list experiments
Consistency of Risk Preference Measures
The Quest for Rationality
The Good, the Bad, and the Ugly
So when are you loss averse? Testing the S-shaped function in pricing and allocation tasks
Responsibility and limited liability in decision making for others – An experimental consideration
The information inelasticity of habits
On prospect theory, making choices for others, and the affective psychology of risk
The risk elicitation puzzle
On the Shape of the Probability Weighting Function
Addiction and Cue-Triggered Decision Processes
The Probability Weighting Function
Who Is ‘Behavioral’? Cognitive Ability and Anomalous Preferences
Investigating Generalizations of Expected Utility Theory Using Experimental Data
A Dual-Self Model of Impulse Control
Rational Choice and the Framing of Decisions
Relative importance of probabilities and payoffs in risk taking.
Curvature of the Probability Weighting Function
Weighing risk and uncertainty.
Violations of the betweenness axiom and nonlinearity in probability
Developments in Non-Expected Utility Theory
Decisions from Experience and the Effect of Rare Events in Risky Choice
Advances in prospect theory
Risk Aversion and Incentive Effects
Prospect Theory
Choices, values, and frames
Choice Under Uncertainty
| Unique citing works | 12 |
|---|---|
| Citations per year | 0,67 |
| Citation span | 2008 - 2023 (16) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 12 |