Lost in state space: are preferences stable?

Andersen, S.; Lau, M.I.; Harrison, G.W.; Rutstrom, E.

Abstract

We use field experiments to examine the temporal stability of risk preferences. Over a 17-month period, we elicited risk preferences from subjects chosen to be representative of the adult Danish population. During this period we revisited many of these subjects and repeated a risk aversion elicitation task. We find some variation in risk attitudes over time, but we do not detect a general tendency for risk attitudes to increase or decrease over a 17-month span. The results also suggest that risk preferences are state contingent with respect to personal finances.

Citation

Andersen, S., Lau, M., Harrison, G., & Rutstrom, E. (2008). Lost in state space: are preferences stable?. International Economic Review, 49(3), 1091-1112. https://doi.org/10.1111/j.1468-2354.2008.00507.x

• Journal Article Type: Article
• Publication Date: Aug 1, 2008
• Deposit Date: Aug 1, 2008
• Journal: International Economic Review
• Print ISSN: 0020-6598
• Electronic ISSN: 1468-2354
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 49
• Issue: 3
• Pages: 1091-1112
• DOI: https://doi.org/10.1111/j.1468-2354.2008.00507.x
• Public URL: https://durham-repository.worktribe.com/output/1573889