English
 
User Manual Privacy Policy Disclaimer Contact us
  Advanced SearchBrowse

Item

ITEM ACTIONSEXPORT

Released

Paper

Higher Order Risk Preferences: New Experimental Measures, Determinants and Field Behavior

MPS-Authors
/persons/resource/persons217962

Schneider,  Sebastian
Max Planck Institute for Research on Collective Goods, Max Planck Society;

/persons/resource/persons206813

Sutter,  Matthias
Max Planck Institute for Research on Collective Goods, Max Planck Society;

External Ressource
Fulltext (public)
There are no public fulltexts stored in PuRe
Supplementary Material (public)
There is no public supplementary material available
Citation

Schneider, S., & Sutter, M. (2020). Higher Order Risk Preferences: New Experimental Measures, Determinants and Field Behavior.


Cite as: http://hdl.handle.net/21.11116/0000-0006-ED24-7
Abstract
We use a novel method to elicit and measure higher order risk preferences (prudence and temperance) in an experiment with 658 adolescents. In line with theoretical predictions, we find that higher order risk preferences – particularly prudence – are strongly related to adolescents' field behavior, including their financial decision making, eco-friendly behavior, and health status, including addictive behavior. Most importantly, we show that dropping prudence and temperance from the analysis of students' field behavior would yield largely misleading conclusions about the relation of risk aversion to these domains of field behavior. Thus our paper puts previous work that ignored higher order risk preferences into an encompassing perspective and clarifies which orders of risk preferences can help understand field behavior of adolescents.