Details
| Originalsprache | Englisch |
|---|---|
| Seiten (von - bis) | 129-156 |
| Seitenumfang | 28 |
| Fachzeitschrift | Journal of risk and uncertainty |
| Jahrgang | 54 |
| Ausgabenummer | 2 |
| Publikationsstatus | Veröffentlicht - 12 Juni 2017 |
Abstract
This paper complements evidence on the Allais paradox from advanced countries and educated people by a novel investigation in a poor rural area. The share of Allais-type behavior is indeed high and related to indicators of “lacking ability,” such as poor education, unemployment, and little financial sophistication. Based on prospective reference theory, we extend these characteristics by biased processing of probabilistic information. Finally, we reveal that Allais-type behavior is linked to risk-related characteristics, such as risk tolerance and optimism. This indicates a potential problem as exactly the more dynamic among the poor tend to make inconsistent decisions under uncertainty.
ASJC Scopus Sachgebiete
- Betriebswirtschaft, Management und Rechnungswesen (insg.)
- Bilanzierung
- Volkswirtschaftslehre, Ökonometrie und Finanzen (insg.)
- Finanzwesen
- Volkswirtschaftslehre, Ökonometrie und Finanzen (insg.)
- Volkswirtschaftslehre und Ökonometrie
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in: Journal of risk and uncertainty, Jahrgang 54, Nr. 2, 12.06.2017, S. 129-156.
Publikation: Beitrag in Fachzeitschrift › Artikel › Forschung › Peer-Review
}
TY - JOUR
T1 - Allais for the poor
T2 - Relations to ability, information processing, and risk attitudes
AU - Herrmann, Tabea
AU - Hübler, Olaf
AU - Menkhoff, Lukas
AU - Schmidt, Ulrich
PY - 2017/6/12
Y1 - 2017/6/12
N2 - This paper complements evidence on the Allais paradox from advanced countries and educated people by a novel investigation in a poor rural area. The share of Allais-type behavior is indeed high and related to indicators of “lacking ability,” such as poor education, unemployment, and little financial sophistication. Based on prospective reference theory, we extend these characteristics by biased processing of probabilistic information. Finally, we reveal that Allais-type behavior is linked to risk-related characteristics, such as risk tolerance and optimism. This indicates a potential problem as exactly the more dynamic among the poor tend to make inconsistent decisions under uncertainty.
AB - This paper complements evidence on the Allais paradox from advanced countries and educated people by a novel investigation in a poor rural area. The share of Allais-type behavior is indeed high and related to indicators of “lacking ability,” such as poor education, unemployment, and little financial sophistication. Based on prospective reference theory, we extend these characteristics by biased processing of probabilistic information. Finally, we reveal that Allais-type behavior is linked to risk-related characteristics, such as risk tolerance and optimism. This indicates a potential problem as exactly the more dynamic among the poor tend to make inconsistent decisions under uncertainty.
KW - Allais paradox
KW - Cognitive ability
KW - Field experiments
KW - First order stochastic dominance
KW - Optimism
KW - Prospective reference theory
KW - Risk attitude
KW - Socio-demographic characteristics
UR - http://www.scopus.com/inward/record.url?scp=85020705204&partnerID=8YFLogxK
U2 - 10.1007/s11166-017-9258-y
DO - 10.1007/s11166-017-9258-y
M3 - Article
AN - SCOPUS:85020705204
VL - 54
SP - 129
EP - 156
JO - Journal of risk and uncertainty
JF - Journal of risk and uncertainty
SN - 0895-5646
IS - 2
ER -