THE REFLECTION EFFECT FOR HIGHER-ORDER RISK PREFERENCES

• 成果类型: Article
• 署名作者: Bleichrodt, Han; van Bruggen, Paul
• 署名单位: Erasmus University Rotterdam; Erasmus University Rotterdam - Excl Erasmus MC; Universitat d'Alacant; Tilburg University
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_00980
• 发表日期: 2022-07
• 页码: 705-717
• 关键词: PROSPECT-THEORY; prudence; attitudes; uncertainty; aversion; demand

摘要

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.