Paper #692

Título:

Do the eealthy risk more money? An experimental comparison

Autores:

Antoni Bosch-Domènech y Joaquim Silvestre

Fecha:

Junio 2003

Resumen:

Are poor people more or less likely to take money risks than wealthy folks? We find that risk attraction is more prevalent among the wealthy when the amounts of money at risk are small (not surprising, since ten dollars is a smaller amount for a wealthy person than for a poor one), but, interestingly, for the larger amounts of money at risk the fraction of the nonwealthy displaying risk attraction exceeds that of the wealthy. We also replicate our previous finding that many people display risk attraction for small money amounts, but risk aversion for large ones. We argue that preferences yielding �risk attraction for small money amounts, together with risk aversion for larger amounts, at all levels of wealth,� while contradicting the expected utility hypothesis, may be well-defined, independently of reference points, on the choice space.

Palabras clave:

Risk attraction, risk aversion, wealth, experiments, Leex

Códigos JEL:

C91, D81

Área de investigación:

Economía Experimental y del Comportamiento

Publicado en:

The Birgit Grodal Symposium, Karl Vind, editor, Springer Verlag, Berlin, 2006

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