Articlehybrid2020

The Reflection Effect for Higher-Order Risk Preferences

22 citations0/0 files storedThe Review of Economics and Statistics

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Decision-Making and Behavioral Economics Financial Literacy, Pension, Retirement Analysis Experimental Behavioral Economics Studies

Abstract

Abstract Higher-order risk preferences are important determinants of economic behavior. We apply insights from behavioral economics: we measure higher-order risk preferences for pure gains and losses. We find a reflection effect not only for second-order risk preferences, as did Kahneman and Tversky (1979), but also for higher-order risk preferences: we find risk aversion, prudence and intemperance for gains and much more risk-loving preferences, imprudence and temperance for losses. These findings are at odds with a universal preference for combining good with bad or good with good, which previous results suggest may underlie higher-order risk preferences.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 22 citations exist upstream.

References

1979Prospect Theory: An Analysis of Decision under Risk 1992Advances in prospect theory: Cumulative representation of uncertainty 2009Gender Differences in Preferences 2003Maps of Bounded Rationality: Psychology for Behavioral Economics 2006A Model of Reference-Dependent Preferences 1990Precautionary Saving in the Small and in the Large 1968Saving and Uncertainty: The Precautionary Demand for Saving 1970The Effect of Uncertainty on Saving Decisions

Cited by

2021Insurance decisions under nonperformance risk and ambiguity 2021Financial and non-financial risk attitudes: What does it matter?2022Higher order risk attitudes: new model insights and heterogeneity of preferences 2022On the predictions of cumulative prospect theory for third and fourth order risk preferences 2022Risk-taking and skewness-seeking behavior in a demographically diverse population 2024A Simple Approach for Measuring Higher-Order Arrow-Pratt Coefficients of Risk Aversion

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.