Higher order risk attitudes

A review of experimental evidence

Stefan T. Trautmann*, Gijs van de Kuilen

*Corresponding author for this work

Research output: Contribution to journalReview articleScientificpeer-review

Abstract

This paper reviews the recent, but fast-growing experimental literature on higher order risk attitudes. After introducing the theoretical context, we first review the basic evidence and empirical moderators of these risk attitudes. We then discuss recent extensions to ambiguity, time risk, and multi-attribute utility. In the last part we review indirect evidence from applied economic decision tasks. (C) 2018 Elsevier B.V. All rights reserved.

Original languageEnglish
Pages (from-to)108-124
JournalEuropean Economic Review
Volume103
DOIs
Publication statusPublished - Apr 2018

Keywords

  • UTILITY-FUNCTIONS
  • DECISION-MAKING
  • UNCERTAINTY
  • AMBIGUITY
  • PRUDENCE
  • AVERSION
  • PREFERENCES
  • SKEWNESS
  • LOTTERIES
  • MARKETS

Cite this

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title = "Higher order risk attitudes: A review of experimental evidence",
abstract = "This paper reviews the recent, but fast-growing experimental literature on higher order risk attitudes. After introducing the theoretical context, we first review the basic evidence and empirical moderators of these risk attitudes. We then discuss recent extensions to ambiguity, time risk, and multi-attribute utility. In the last part we review indirect evidence from applied economic decision tasks. (C) 2018 Elsevier B.V. All rights reserved.",
keywords = "UTILITY-FUNCTIONS, DECISION-MAKING, UNCERTAINTY, AMBIGUITY, PRUDENCE, AVERSION, PREFERENCES, SKEWNESS, LOTTERIES, MARKETS",
author = "Trautmann, {Stefan T.} and {van de Kuilen}, Gijs",
year = "2018",
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doi = "10.1016/j.euroecorev.2018.01.007",
language = "English",
volume = "103",
pages = "108--124",
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}

Higher order risk attitudes : A review of experimental evidence. / Trautmann, Stefan T.; van de Kuilen, Gijs.

In: European Economic Review, Vol. 103, 04.2018, p. 108-124.

Research output: Contribution to journalReview articleScientificpeer-review

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KW - DECISION-MAKING

KW - UNCERTAINTY

KW - AMBIGUITY

KW - PRUDENCE

KW - AVERSION

KW - PREFERENCES

KW - SKEWNESS

KW - LOTTERIES

KW - MARKETS

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JF - European Economic Review

SN - 0014-2921

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