How General Are Risk Preferences? Choices under Uncertainty in Different Domains

• 成果类型: Article
• 署名作者: Einav, Liran; Finkelstein, Amy; Pascu, Iuliana; Cullen, Mark R.
• 署名单位: Stanford University; National Bureau of Economic Research; Massachusetts Institute of Technology (MIT); Stanford University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.102.6.2606
• 发表日期: 2012
• 页码: 2606-2638
• 关键词: heterogeneity; determinants; DECISION; welfare; HEALTH

摘要

We analyze the extent to which individuals' choices over five employer-provided insurance coverage decisions and one 401(k) investment decision exhibit systematic patterns, as would be implied by a general utility component of risk preferences. We provide evidence consistent with an important domain-general component that operates across all insurance choices. We find a considerably weaker relationship between one's insurance decisions and 401(k) asset allocation, although this relationship appears larger for more financially sophisticated individuals. Estimates from a stylized coverage choice model suggest that up to 30 percent of our sample makes choices that may be consistent across all 6 domains. (JEL D12, D14, D81, G22, J33)