EXPLORING THE CONSISTENCY OF HIGHER ORDER RISK PREFERENCES

• DOI: 10.1111/iere.12424
• Publication Date: 2019-10-07T13:07:20Z
• Authors: Alexander Haering; Timo Heinrich; Thomas Mayrhofer
• Keywords: Framing (construction); Framing effect; Variation (astronomy)

Abstract This study measures higher order risk preferences and their consistency. We explore the role of country differences, variation stakes, framing lotteries. observe a robust dichotomous pattern choice behavior in China, United States, Germany. The majority choices are consistent with mixed aversion or risk‐loving behavior. also find this after 10‐fold increase stakes. Finally, our results reveal that is strengthened if lotteries displayed compound instead reduced form. In follow‐up study, we potential explanations for effect.