Risk aversion, level and incentive effects: a laboratorial experiment with ufc students
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Publication Date: | 2018 |
Other Authors: | , |
Format: | Article |
Language: | por |
Source: | Contextus (Fortaleza. Online) |
Download full: | http://periodicos.ufc.br/contextus/article/view/33266 |
Summary: | This paper makes an empirical study about decision making under uncertainty among students of the Federal University of Ceará. In order to measure individual risk preferences, an elicitation technique called the Multiple Price Lists is used. Such a methodology was popularized by Holt and Laury (2002) and makes use of a list of paired lotteries, structured in such a way that the number of safe choices of the individual can be used to estimate his or her degree of risk aversion. As a result, the level of risk aversion found is higher than predicted by the theory and the hypothesis of the value scale effect as well as that of the monetary incentive effect are validated by the experiment. Thus, this work shows that there is a tendency to underestimate the willingness of individuals to take risks in hypothetical laboratory experiments, with the possibility of economic losses. |
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Risk aversion, level and incentive effects: a laboratorial experiment with ufc studentsAversión al riesgo, nivel y incentivo efecto: un experimento laboratorial con alumnos de UFCAversão ao risco e efeito incentivo: um experimento laboratorial com alunos da UFCRisk aversionLotteryLaboratory experimentScale effectIncentive effectAversión al riesgoLoteríaExperimento de laboratorioEfecto de escalaEfecto de incentivoAversão ao riscoLoteriaExperimento laboratorialEfeito escalaEfeito incentivoThis paper makes an empirical study about decision making under uncertainty among students of the Federal University of Ceará. In order to measure individual risk preferences, an elicitation technique called the Multiple Price Lists is used. Such a methodology was popularized by Holt and Laury (2002) and makes use of a list of paired lotteries, structured in such a way that the number of safe choices of the individual can be used to estimate his or her degree of risk aversion. As a result, the level of risk aversion found is higher than predicted by the theory and the hypothesis of the value scale effect as well as that of the monetary incentive effect are validated by the experiment. Thus, this work shows that there is a tendency to underestimate the willingness of individuals to take risks in hypothetical laboratory experiments, with the possibility of economic losses.Este trabajo hace un estudio empírico sobre toma de decisión bajo incertidumbre junto a alumnos de la Universidad Federal de Ceará. Para medir las preferencias individuales de riesgo, se utiliza la técnica de selección denominada Lista de Precios Múltiples (Multiple Price Listas). Esta metodología fue popularizada por Holt y Laury (2002) y hace uso de una lista de loterías pareadas, estructurada de manera que el número de opciones seguras del individuo pueda ser utilizado para estimar su grado de aversión al riesgo. Como resultado, el nivel de aversión al riesgo encontrado es mayor que el previsto por la teoría, y las hipótesis de efecto de la escala de valores y efecto del incentivo monetario son validadas por el experimento. De ese modo, este trabajo constata una tendencia a la subestimación en la disposición de los individuos a asumir riesgo en experimentos hipotéticos de laboratorio, con posibilidad de pérdidas económicas.Este trabalho faz um estudo empírico sobre tomada de decisão sob incerteza junto a alunos da Universidade Federal do Ceará. Para mensurar as preferências individuais de risco, utiliza-se a técnica de elicitação denominada Lista De Preços Múltiplos (Multiple Price Lists). Tal metodologia, popularizada por Holt e Laury (2002), faz uso de uma lista de loterias pareadas, estruturada de maneira que o número de escolhas seguras do indivíduo possa ser utilizado para estimar o seu grau de aversão ao risco. Como resultado, o nível de aversão ao risco encontrado é maior que o previsto pela teoria, e as hipóteses de efeito da escala de valores e efeito do incentivo monetário são validadas pelo experimento. Desse modo, este trabalho constata uma tendência de subestimação na disposição dos indivíduos em assumir risco em experimentos hipotéticos de laboratório, com possibilidade de prejuízos econômicos.FEAAC/UFC2018-11-05info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionPesquisa Empírica Experimentalapplication/pdfapplication/ziphttp://periodicos.ufc.br/contextus/article/view/3326610.19094/contextus.v0i0.33266Contextus - Contemporary Journal of Economics and Management; Vol 16 No esp.: FEAAC's 80 years 2018; 10-33Contextus – Revista Contemporánea de Economía y Gestión; Vol. 16 Núm. esp.: 80 años FEAAC 2018; 10-33Contextus – Revista Contemporânea de Economia e Gestão; v. 16 n. esp.: 80 anos FEAAC 2018; 10-332178-92581678-2089reponame:Contextus (Fortaleza. Online)instname:Universidade Federal do Ceará (UFC)instacron:UFCporhttp://periodicos.ufc.br/contextus/article/view/33266/pdfhttp://periodicos.ufc.br/contextus/article/view/33266/166039http://periodicos.ufc.br/contextus/article/view/33266/166040http://periodicos.ufc.br/contextus/article/view/33266/166041http://periodicos.ufc.br/contextus/article/view/33266/166042Copyright (c) 2018 Revista: apenas para a 1a. publicaçãohttps://creativecommons.org/licenses/by-nc/4.0info:eu-repo/semantics/openAccessSoares, Ricardo BritoSimôes, PatríciaJorge Neto, Paulo de Melo2021-11-20T14:56:47Zoai:periodicos.ufc:article/33266Revistahttp://periodicos.ufc.br/contextusPUBhttp://periodicos.ufc.br/contextus/oairevistacontextus@ufc.br2178-92581678-2089opendoar:2021-11-20T14:56:47Contextus (Fortaleza. Online) - Universidade Federal do Ceará (UFC)false |
dc.title.none.fl_str_mv |
Risk aversion, level and incentive effects: a laboratorial experiment with ufc students Aversión al riesgo, nivel y incentivo efecto: un experimento laboratorial con alumnos de UFC Aversão ao risco e efeito incentivo: um experimento laboratorial com alunos da UFC |
title |
Risk aversion, level and incentive effects: a laboratorial experiment with ufc students |
spellingShingle |
Risk aversion, level and incentive effects: a laboratorial experiment with ufc students Soares, Ricardo Brito Risk aversion Lottery Laboratory experiment Scale effect Incentive effect Aversión al riesgo Lotería Experimento de laboratorio Efecto de escala Efecto de incentivo Aversão ao risco Loteria Experimento laboratorial Efeito escala Efeito incentivo |
title_short |
Risk aversion, level and incentive effects: a laboratorial experiment with ufc students |
title_full |
Risk aversion, level and incentive effects: a laboratorial experiment with ufc students |
title_fullStr |
Risk aversion, level and incentive effects: a laboratorial experiment with ufc students |
title_full_unstemmed |
Risk aversion, level and incentive effects: a laboratorial experiment with ufc students |
title_sort |
Risk aversion, level and incentive effects: a laboratorial experiment with ufc students |
author |
Soares, Ricardo Brito |
author_facet |
Soares, Ricardo Brito Simôes, Patrícia Jorge Neto, Paulo de Melo |
author_role |
author |
author2 |
Simôes, Patrícia Jorge Neto, Paulo de Melo |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Soares, Ricardo Brito Simôes, Patrícia Jorge Neto, Paulo de Melo |
dc.subject.por.fl_str_mv |
Risk aversion Lottery Laboratory experiment Scale effect Incentive effect Aversión al riesgo Lotería Experimento de laboratorio Efecto de escala Efecto de incentivo Aversão ao risco Loteria Experimento laboratorial Efeito escala Efeito incentivo |
topic |
Risk aversion Lottery Laboratory experiment Scale effect Incentive effect Aversión al riesgo Lotería Experimento de laboratorio Efecto de escala Efecto de incentivo Aversão ao risco Loteria Experimento laboratorial Efeito escala Efeito incentivo |
description |
This paper makes an empirical study about decision making under uncertainty among students of the Federal University of Ceará. In order to measure individual risk preferences, an elicitation technique called the Multiple Price Lists is used. Such a methodology was popularized by Holt and Laury (2002) and makes use of a list of paired lotteries, structured in such a way that the number of safe choices of the individual can be used to estimate his or her degree of risk aversion. As a result, the level of risk aversion found is higher than predicted by the theory and the hypothesis of the value scale effect as well as that of the monetary incentive effect are validated by the experiment. Thus, this work shows that there is a tendency to underestimate the willingness of individuals to take risks in hypothetical laboratory experiments, with the possibility of economic losses. |
publishDate |
2018 |
dc.date.none.fl_str_mv |
2018-11-05 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Pesquisa Empírica Experimental |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://periodicos.ufc.br/contextus/article/view/33266 10.19094/contextus.v0i0.33266 |
url |
http://periodicos.ufc.br/contextus/article/view/33266 |
identifier_str_mv |
10.19094/contextus.v0i0.33266 |
dc.language.iso.fl_str_mv |
por |
language |
por |
dc.relation.none.fl_str_mv |
http://periodicos.ufc.br/contextus/article/view/33266/pdf http://periodicos.ufc.br/contextus/article/view/33266/166039 http://periodicos.ufc.br/contextus/article/view/33266/166040 http://periodicos.ufc.br/contextus/article/view/33266/166041 http://periodicos.ufc.br/contextus/article/view/33266/166042 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2018 Revista: apenas para a 1a. publicação https://creativecommons.org/licenses/by-nc/4.0 info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2018 Revista: apenas para a 1a. publicação https://creativecommons.org/licenses/by-nc/4.0 |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf application/zip |
dc.publisher.none.fl_str_mv |
FEAAC/UFC |
publisher.none.fl_str_mv |
FEAAC/UFC |
dc.source.none.fl_str_mv |
Contextus - Contemporary Journal of Economics and Management; Vol 16 No esp.: FEAAC's 80 years 2018; 10-33 Contextus – Revista Contemporánea de Economía y Gestión; Vol. 16 Núm. esp.: 80 años FEAAC 2018; 10-33 Contextus – Revista Contemporânea de Economia e Gestão; v. 16 n. esp.: 80 anos FEAAC 2018; 10-33 2178-9258 1678-2089 reponame:Contextus (Fortaleza. Online) instname:Universidade Federal do Ceará (UFC) instacron:UFC |
instname_str |
Universidade Federal do Ceará (UFC) |
instacron_str |
UFC |
institution |
UFC |
reponame_str |
Contextus (Fortaleza. Online) |
collection |
Contextus (Fortaleza. Online) |
repository.name.fl_str_mv |
Contextus (Fortaleza. Online) - Universidade Federal do Ceará (UFC) |
repository.mail.fl_str_mv |
revistacontextus@ufc.br |
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1798045753139003392 |