Reflection effect under different risk attitudes
Reflection effect under different risk attitudes
Author(s): Vladimír Gazda, Matúš Kubák, Marek Grof, Karolína Barinková, Michaela ŽecováSubject(s): Business Economy / Management, Financial Markets
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: reflection effect; experiment; lottery; risk; DOSPERT (Domain-Specific RiskTaking) scale;
Summary/Abstract: „Reflection effect“ means, that people are risk averse if dealing with profits and risk seeking by challenging losses (Kahneman and Tversky, 1979). The aim of the paper is to find out whether the decisions of the experiment participants differ when dealing with positive and negative prospects by choosing a preferred lottery. Standardized scale (DOSPERT) evaluating the participant willingness to take risk in different domains of life is also considered. An econometric model for predictions of the paired lottery game results depending on the risk characteristics identified within DOSPERT is estimated in the paper.
Journal: Analele Ştiinţifice ale Universităţii »Alexandru Ioan Cuza« din Iaşi. Ştiinţe economice
- Issue Year: 58/2011
- Issue No: 1
- Page Range: 375-386
- Page Count: 12
- Language: English