The reflection effect for higher order risk preferences

Han Bleichrodt, Paul van Bruggen

Research output: Contribution to journalArticleScientificpeer-review

10 Citations (Scopus)


Higher-order risk preferences are important determinants of economic behavior. We apply insights from behavioral economics: we measure higher-order risk preferences for pure gains and losses. We find a reflection effect not only for second-order risk preferences, as did Kahneman and Tversky (1979), but also for higher-order risk preferences: we find risk aversion, prudence and intemperance for gains and much more risk-loving preferences, imprudence and temperance for losses. These findings are at odds with a universal preference for combining good with bad or good with good, which previous results suggest may underlie higher-order risk preferences.

Original languageEnglish
Pages (from-to)705-717
Number of pages13
JournalReview of Economics and Statistics
Issue number4
Publication statusPublished - Jul 2022


  • risk apportionment
  • higher order risk preferences
  • risk aversion
  • prudence
  • temperance
  • reference dependence


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