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dc.contributor.author
Fehr-Duda, Helga
dc.contributor.author
Bruhin, Adrian
dc.contributor.author
Epper, Thomas
dc.contributor.author
Schubert, Renate
dc.date.accessioned
2017-06-08T20:10:34Z
dc.date.available
2017-06-08T20:10:34Z
dc.date.issued
2008
dc.identifier.uri
http://hdl.handle.net/20.500.11850/11164
dc.description.abstract
How does risk tolerance vary with stake size? This important question cannot be adequately answered if framing effects, nonlinear probability weighting, and heterogeneity of preference types are neglected. We show that, contrary to gains, no coherent change in relative risk aversion is observed for losses. The increase in relative risk aversion over gains cannot be captured by the curvature of the utility function. It is driven predominantly by a change in probability weighting of a majority group of individuals who exhibit more rational probability weighting at high stakes. These results not only challenge expected utility theory, but also prospect theory.
dc.language.iso
en
dc.publisher
Socioeconomic Institute, University of Zurich
dc.title
Rationality on the rise
dc.type
Working Paper
ethz.title.subtitle
Why relative risk aversion increases with stake size
ethz.journal.title
Working Paper
ethz.journal.volume
0708
ethz.pages.start
1
ethz.pages.end
33
ethz.notes
February 2008 revised version.
ethz.identifier.nebis
004372572
ethz.publication.place
Zürich
ethz.publication.status
published
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02045 - Dep. Geistes-, Sozial- u. Staatswiss. / Dep. of Humanities, Social and Pol.Sc.::03361 - Schubert, Renate / Schubert, Renate
ethz.leitzahl.certified
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02045 - Dep. Geistes-, Sozial- u. Staatswiss. / Dep. of Humanities, Social and Pol.Sc.::03361 - Schubert, Renate / Schubert, Renate
ethz.identifier.url
http://www.soi.uzh.ch/research/wp/2007/wp0708.pdf
ethz.date.deposited
2017-06-08T20:10:47Z
ethz.source
ECIT
ethz.identifier.importid
imp59364bfea458611436
ethz.ecitpid
pub:22293
ethz.eth
yes
ethz.availability
Metadata only
ethz.rosetta.installDate
2017-07-19T10:13:06Z
ethz.rosetta.lastUpdated
2018-10-01T06:03:15Z
ethz.rosetta.versionExported
true
ethz.COinS
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