scholarly journals The stability and evolution of risk attitudes and time preferences after a disaster

2022 ◽  
pp. 102791
Author(s):  
Dhanushka Thamarapani ◽  
Marc Rockmore
Keyword(s):  
Time Preferences ◽  
Risk Attitudes ◽  
The Stability

scholarly journals Right-to-Choose Auctions: A Field Study of Water Markets in the Limari Valley of Chile

2010 ◽  
Vol 39 (2) ◽  
pp. 213-226 ◽  
Author(s):  
Jonathan E. Alevy ◽  
Oscar Cristi ◽  
Oscar Melo
Keyword(s):  
Field Study ◽  
Research Team ◽  
Field Experiments ◽  
Time Preferences ◽  
Water Markets ◽  
Risk Attitudes ◽  
Sequential Auction ◽  
The Difference ◽  
Water Volumes ◽  
The Right

Field experiments were conducted with farmers in the Limari Valley of Chile to test extant theory on right-to-choose auctions. Water volumes that differed by reservoir source and time of availability were offered for sale by the research team. The auctions were supplemented by protocols to elicit risk and time preferences of bidders. We find that the right-to-choose auctions raise significantly more revenue than the benchmark sequential auction. Risk attitudes explain a substantial amount of the difference in bidding between auction institutions, consonant with received theory. The auction bidding revealed distinct preferences for water types, which has implications for market re-design.

scholarly journals Impatience and Uncertainty: Experimental Decisions Predict Adolescents' Field Behavior

2013 ◽  
Vol 103 (1) ◽  
pp. 510-531 ◽  
Author(s):  
Matthias Sutter ◽  
Martin G Kocher ◽  
Daniela Glätzle-Rützler ◽  
Stefan T Trautmann
Keyword(s):  
Body Mass Index ◽  
Children And Adolescents ◽  
Body Mass ◽  
Time Preferences ◽  
Risk Attitudes ◽  
Related Field ◽  
Field Behavior ◽  
Health Related ◽  
Ambiguity Attitudes ◽  
Saving Decisions

We study risk attitudes, ambiguity attitudes, and time preferences of 661 children and adolescents, aged ten to eighteen years, in an incentivized experiment and relate experimental choices to field behavior. Experimental measures of impatience are found to be significant predictors of health-related field behavior, saving decisions, and conduct at school. In particular, more impatient children and adolescents are more likely to spend money on alcohol and cigarettes, have a higher body mass index, are less likely to save money, and show worse conduct at school. Experimental measures for risk and ambiguity attitudes are only weak predictors of field behavior.

Gender differences in the stability of risk attitudes

2021 ◽  
Author(s):  
Anwesha Bandyopadhyay ◽  
Lutfunnahar Begum ◽  
Philip J. Grossman
Keyword(s):  
Gender Differences ◽  
Risk Attitudes ◽  
The Stability

Assessing risk attitudes and time preferences on the rural–urban interface of Bengaluru, India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Johannes Wegmann ◽  
Daniel Hermann ◽  
Oliver Musshoff
Keyword(s):  
Rural Areas ◽  
Urban Areas ◽  
Risk Preferences ◽  
Time Preferences ◽  
Risk Attitudes ◽  
Indian Government ◽  
Content Type ◽  
Rural And Urban Areas ◽  
Rural And Urban ◽  
Agricultural Households

PurposeUrbanization is a main driver of the transformation from agricultural-based economies to service-based economies. At the same time, urbanization might also alter preferences and attitudes such as risk and time preferences that contribute to economic growth and foster this transition. To study the effect of urbanization, few studies have compared individual time or risk preferences in rural and urban settings, reporting mixed results. This study analyses how risk and time preferences alter along the rural–urban interface and assesses the correlation of socio-economic, socio-cultural and demographic characteristics with these preferences. Using such an approach provides insights how preferences are altered in areas of transition as the rural–urban interface mirrors different stages of urbanization.Design/methodology/approachUsing experimental approaches, risk attitudes and time preferences of 1,117 agricultural and non-agricultural households were elicited along the rural–urban interface of the fast-developing Indian megacity Bengaluru in 2016/17. The study reports joint estimations of risk and time preferences and discusses the influence of urbanization on these preferences.FindingsResults show that households are on average slightly risk-averse and highly impatient. The results also indicate a decline in discount rates towards rural areas while risk preferences do not considerably differ between those areas. This puzzling result may be explained by difference response of rural and urban areas to the Demonetization policy of the Indian government in 2016.Originality/valueThe research design compares jointly estimated risk and time preferences of agricultural and non-agricultural households of a rapidly urbanizing area in a low-medium income country.

scholarly journals Why Buy Accident Forgiveness Policies? An Experiment

2018 ◽  
Vol 10 (8) ◽  
pp. 1
Author(s):  
Fan Liu
Keyword(s):  
Decision Making ◽  
Risk Aversion ◽  
Time Preferences ◽  
Purchase Decision ◽  
Risk Attitudes ◽  
Purchase Decisions ◽  
Risk Averse ◽  
Product Price ◽  
High Degree

Risk and time preferences influence the insurance purchase decisions under uncertainty. Accident forgiveness, often considered as “premium insurance,” protects policyholders against a premium increase in the next period if an at-fault accident occurs. In this paper, by conducting a unique experiment in the controlled laboratory conditions, we examine the role of risk and time preferences in accident forgiveness purchase decisions. We find that individual discount rates and product price significantly affect premium insurance purchase decision. Interestingly, we also find evidence that less risk averse policyholders in general behave more like risk neutral when making insurance decision. Risk attitudes affect insurance decision-making only among those who have relatively high degree of risk aversion.

scholarly journals A tale of two cities: an experiment on inequality and preferences

2021 ◽  
Author(s):  
Maria Bigoni ◽  
Stefania Bortolotti ◽  
Veronica Rattini
Keyword(s):  
Young Adults ◽  
Time Preferences ◽  
Economic Environment ◽  
Risk Attitudes ◽  
Behavioral Difference ◽  
Homogeneous Population ◽  
Individual Preferences ◽  
Two Cities ◽  
Economic Background ◽  
The City

AbstractThe existence of a strong link between socio-economic background and individual preferences has been documented among both children and grown-ups. Here, we study whether such a correlation persists even in a highly homogeneous population of young adults: university students. Our findings indicate that participants living in an area characterized by a high socio-economic environment tend to trust more and are more inclined to reciprocate higher levels of trust, as compared to those coming from less wealthy neighborhoods. This behavioral difference is, at least in part, driven by heterogeneities in beliefs: subjects from the most affluent part of the city have more optimistic expectations on their counterpart’s trustworthiness than those living in a lower socio-economic environment. By contrast, no significant differences emerge in other preferences: generosity, risk attitudes, and time preferences. Finally, we do not find any systematic evidence of out-group discrimination based on neighborhood identity.

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