Higher order risk attitudes: A review of experimental evidence

Stefan T. Trautmann; Gijs van de Kuilen

doi:10.1016/j.euroecorev.2018.01.007

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 journal › Review article › peer-review

50 Citations (Scopus)

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 language	English
Pages (from-to)	108-124
Journal	European Economic Review
Volume	103
DOIs	https://doi.org/10.1016/j.euroecorev.2018.01.007
Publication status	Published - Apr 2018

Keywords

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

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10.1016/j.euroecorev.2018.01.007

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.",

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year = "2018",

month = apr,

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AB - 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.

KW - UTILITY-FUNCTIONS

KW - DECISION-MAKING

KW - UNCERTAINTY

KW - AMBIGUITY

KW - PRUDENCE

KW - AVERSION

KW - PREFERENCES

KW - SKEWNESS

KW - LOTTERIES

KW - MARKETS

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DO - 10.1016/j.euroecorev.2018.01.007

M3 - Review article

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VL - 103

SP - 108

EP - 124

JO - European Economic Review

JF - European Economic Review

ER -

Higher order risk attitudes: A review of experimental evidence

Abstract

Keywords

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