Since 2014
A Simple Method of Elicitation of Preferences under Risk
Brazilian Review of Econometrics
View Archive Info| Field | Value | |
| Title |
A Simple Method of Elicitation of Preferences under Risk
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| Creator |
Resende, José Guilherme Lara; Universidade de BrasÃlia
Tecles, Patricia Langsch |
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| Subject |
Prospect theory. Utility measurement. Loss aversion
C91, D81, D01 |
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| Description |
This study estimates the utility of lotteries and the degree of loss aversion applying the parametric method proposed by \citet{abde08} to preferences observed in a computer-based experiment conducted at Universidadede Bras\'{i}lia. Most participants displayed risk aversion for gain prospects and risk propensity for loss prospects. Real incentives for loss prospects led to a greater concavity of the utility function than the one estimated by \citet{abde08}. We observed reversals in behavior toward risk in the presence of a certain gain or loss in the prospect. Moreover, three different measures of loss aversion are discussed and, when applied to the experimental data, they were more appropriate with its theoretical definition than the most widely used measure of \citet{tver92}
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| Publisher |
Brazilian Review of Econometrics
Brazilian Review of Econometrics |
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| Contributor |
—
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| Date |
2013-08-28
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — |
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| Format |
application/pdf
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| Identifier |
http://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/8139
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| Source |
Brazilian Review of Econometrics; Vol 31, No 2 (2011); 201-229
Brazilian Review of Econometrics; Vol 31, No 2 (2011); 201-229 1980-2447 |
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| Language |
eng
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| Relation |
http://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/8139/9659
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