dc.contributor.author |
Harbaugh, William |
|
dc.contributor.author |
Krause, Kate |
|
dc.contributor.author |
Vesterlund, Lise |
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dc.date.accessioned |
2005-03-25T19:17:00Z |
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dc.date.available |
2005-03-25T19:17:00Z |
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dc.date.issued |
2001-11-05 |
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dc.identifier.citation |
Experimental Economics 5(1): 53-84. |
en |
dc.identifier.uri |
http://hdl.handle.net/1794/694 |
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dc.description |
45 p. |
en |
dc.description.abstract |
In this paper we examine how risk attitudes change with age. We present participants from age 5 to 64 with choices between simple gambles and the expected value of the gambles. The gambles are over both gains and losses, and vary in the probability of the non-zero payoff. Surprisingly, we find that many participants are risk seeking when faced with high-probability prospects over gains and risk averse when faced with small-probability prospects. Over losses we find the exact opposite. Children’s choices are consistent with the underweighting of low-probability events and the overweighting of high-probability ones. This tendency diminishes with age, and on average adults appear to use the objective probability when evaluating risky prospects. |
en |
dc.description.sponsorship |
This research was funded by grants from the National Science Foundation and the Preferences Network of the MacArthur Foundation. |
en |
dc.format.extent |
307657 bytes |
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dc.format.mimetype |
application/pdf |
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dc.language.iso |
en_US |
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dc.subject |
Probability weighting |
en |
dc.subject |
Subjective expected utility |
en |
dc.subject |
Prospect theory |
en |
dc.subject |
Children |
en |
dc.subject |
Risk |
en |
dc.title |
Risk Attitudes of Children and Adults : Choices over Small and Large Probability Gains and Losses |
en |
dc.type |
Article |
en |