Deal or No Deal: Risk Aversion in a Field Experiment with Very High Stakes

Content Provider	Semantic Scholar
Copyright Year	2005
Abstract	We utilize data from an Australian television game show involving high stakes and sequential lottery choices to show that risk aversion increases with increasing stakes. Our estimates of risk aversion are lower than that found in other game show papers or other empirical work. Importantly, we also nd considerable heterogeneity in people’s willingness to bear risk. A special feature of the game show enables the high stakes testing of prospect theory. Our data provides support for this theory. Journal of Economic Literature Classi cation: C13, C23, C25, C93, D81, D82.
File Format	PDF HTM / HTML
Alternate Webpage(s)	https://www.efmaefm.org/0EFMSYMPOSIUM/2006/papers/48-EFM06%20-%20Faff%20%20DealNoDealRiskAversion.pdf
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article