Individual Decision-Making

Higher Order Risk Preferences: Novel Method, New Measures, Determinants and Field Behavior

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 …

Higher Order Risk Preferences: Experimental Measures, Determinants and Field Behavior - Talk @ iHEA 2021

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.

Income Risk, Precautionary Saving, and Loss Aversion – An Empirical Test

This paper empirically examines the behavioral precautionary saving hypothesis by Kőszegi and Rabin (2009) stating that uncertainty about future income triggers saving because of loss aversion. We extend their theoretical analysis to also …

Measuring Utility – An Application to Higher Order Risk

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 …