Applied Financial Economics Letters · 2005 · 115 citations · 7 references
Social SciencesEconomicsPsychologyBehavioral EconomicsExperimental EconomicsExperimental PsychologyProspect TheoryRisk AversionRisk BehaviorRisk PreferencesRisk-sensitive Decision MakingUtility TheoryBehavioral Risk AversionControlled ExperimentsIntertemporal Choice Under RiskIntertemporal Risk PreferencesRisk Aversion EstimationRisk Preferences ElicitationTemporal StabilityTemporal Stability Analysis
Estimates of risk aversion can be obtained from controlled laboratory experiments. The temporal stability of those preferences is assumed in many applications. This assumption is tested by eliciting risk aversion measures from subjects at two distinct times. Evidence consistent with the stability assumption is found.
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