Higher Order Risk Preferences

We use a novel method to elicit and measure higher order risk preferences (prudence and temperance) in an experiment with 658 adolescents. In line with theoretical predictions, we find that higher order risk preferences - particularly prudence - are …

Measuring utility is at the heart of microeconomics and has important applications in many areas of economics. Here we present a new experimental method to elicit utility functions and associated measures of (higher order) risk preferences. The …