Higher Order Risk Preferences

We present and use a novel method to elicit and measure the intensities of higher order risk preferences (prudence and temperance) in an experiment with 658 adolescents. In line with theory, we find that higher order risk preferences are strongly …

Please find the corresponding working paper here! Thanks to Arthur Attema for organizing the session, and to Stefan Lipann and Daniel Wiesen for chairing the session and discussing the presentations.

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 …