Cristin-resultat-ID: 1833481
Sist endret: 25. september 2020, 13:36
Resultat
Vitenskapelig foredrag
2020

Endowment Effects and Loss aversion in the Risky Investment Game

Bidragsytere:
  • Stein Terje Holden og
  • Mesfin Tilahun

Presentasjon

Navn på arrangementet: 42nd Annual Meeting of the Norwegian Association of Economists
Sted: NMBU, Ås
Dato fra: 6. januar 2020
Dato til: 7. januar 2020

Arrangør:

Arrangørnavn: Safunnsøkonomenes forning

Om resultatet

Vitenskapelig foredrag
Publiseringsår: 2020

Beskrivelse Beskrivelse

Tittel

Endowment Effects and Loss aversion in the Risky Investment Game

Sammendrag

The risky investment game of Gneezy and Potters (1997) has been a popular tool used to estimate risk tolerance and myopic loss aversion. We have assessed whether a simple one-shot version of this game that is attractive as a simple tool to elicit risk tolerance among respondents with limited education, can lead to biased estimates of risk aversion due to endowment effects. We use a field experiment with a pool of young business group members with limited education to test for the potential bias associated with the initial endowment allocation. We find a highly significant endowment effect which may explain low investment levels and exaggerated measures of risk aversion where this game has been used to estimate risk aversion. We develop and test a more balanced version of the risk investment game and demonstrate that it gives less bias due to endowment effects than the standard design and a full risk design that creates an endowment effect in the opposite direction, indicating that loss aversion may not be the primary cause of the endowment effect.

Bidragsytere

Aktiv cristin-person

Stein Terje Holden

  • Tilknyttet:
    Forfatter
    ved Handelshøgskolen ved Norges miljø- og biovitenskapelige universitet
Aktiv cristin-person

Mesfin Tilahun Gelaye

Bidragsyterens navn vises på dette resultatet som Mesfin Tilahun
  • Tilknyttet:
    Forfatter
    ved Handelshøgskolen ved Norges miljø- og biovitenskapelige universitet
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