Experimental Economics and Game Theory Seminar for February 14

Events, Seminars | February 7, 2020

Join us for the ICES Seminar in Experimental Economics and Game Theory of the Spring 2020 semester, featuring Matthias Sutter.

Dr. Sutter, of Max Planck Institute Bonn, will discuss his paper (Higher Order) Risk Preferences: Experimental Measures, Determinants and Related Field Behavior (Abstract). The talk will take place on Friday, February 14th, from 4:00 to 5:00pm in room 5183 of Vernon Smith Hall, Arlington campus.
Visit the Seminar schedule to access the paper and to learn more about upcoming speakers.

Abstract

Higher order risk preferences are well-klown for their relation with precautionary saving or portfolio allocation. Theoretically, they are also connected with other important behavior, such as health-related or eco-friendly behavior, but these relations have never been investigated with eld data. In a large-scale experiment with 658 adolescents, we relate experimental measures of higher order risk preferences witheld behavior. Field behavior with respect to six different domains is collected in an extensive survey, where we focus on general risk taking, the environmental and the health domain, particularly on addictive behavior. Using a novel method allowing the experimental elicitation of intensities of prudence and temperance, we find females behaving more risk averse, prudent and temperant, and high-ability students behaving less risk averse and temperant. We replicate findings on financial decision making and higher order risk preferences, and find that prudence is a strong predictor for health-related behavior: An index capturing the addictive use of smartphones is predicted significantly by prudence, but not by risk aversion or temperance.

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