TY  - CHAP
AB  - This paper reports findings from a series of laboratory asset markets. Although stakes in these markets are modest, asset prices display a substantial equity premium (risky assets are priced substantially below their expected payoffs) – indicating substantial risk aversion. Moreover, the differences between expected asset payoffs and asset prices are in the direction predicted by standard asset-pricing theory: assets with higher beta have higher returns. This work suggests ways to separate the effects of risk aversion from competing explanations in other experimental environments.
VL  - 12
SN  - 978-1-84950-547-5, 978-0-7623-1384-6/0193-2306
DO  - 10.1016/S0193-2306(08)00007-0
UR  - https://doi.org/10.1016/S0193-2306(08)00007-0
AU  - Bossaerts Peter
AU  - Zame William R.
ED  - James C. Cox
ED  - Glenn W. Harrison
PY  - 2008
Y1  - 2008/01/01
TI  - Risk aversion in laboratory asset markets
T2  - Risk Aversion in Experiments
T3  - Research in Experimental Economics
PB  - Emerald Group Publishing Limited
SP  - 341
EP  - 358
Y2  - 2024/04/23
ER  -