Testing for risk aversion: A stochastic dominance approach

Moshe Levy*, Haim Levy

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

26 Scopus citations

Abstract

We conduct an experiment based on the Stochastic Dominance framework in order to investigate risk-aversion in isolation of other effects such as subjective probability distortion, the 'certainty effect', and 'framing' effects. The result is striking: most individuals are not risk-averse.

Original languageAmerican English
Pages (from-to)233-240
Number of pages8
JournalEconomics Letters
Volume71
Issue number2
DOIs
StatePublished - May 2001

Bibliographical note

Funding Information:
The authors acknowledge the financial support of the Krueger Fund and the Zagagi Fund.

Keywords

  • C91
  • D81
  • Decision-making under uncertainty
  • Risk-aversion
  • Stochastic Dominance

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