Risk Aversion in the Laboratory

Abstract

We review the experimental evidence on risk aversion in controlled laboratory settings. We review the strengths and weaknesses of alternative elicitation procedures, the strengths and weaknesses of alternative estimation procedures, and finally the effect of controlling for risk attitudes on inferences in experiments.

Citation

Harrison, G.W. and Elisabet Rutström, E. (2008), "Risk Aversion in the Laboratory", Cox, J.C. and Harrison, G.W. (Ed.) Risk Aversion in Experiments (Research in Experimental Economics, Vol. 12), Emerald Group Publishing Limited, Leeds, pp. 41-196. https://doi.org/10.1016/S0193-2306(08)00003-3