Forthcoming – Economic Letters
ABSTRACT: Evidence of risk aversion in laboratory settings over small stakes leads to a priori implausible levels of risk aversion over large stakes under certain assumptions. One core assumption in statements of this calibration puzzle is that small-stakes risk aversion is observed over all levels of wealth, or… more »
Published in 2015 in Economic Letters, Volume 127.
ABSTRACT: We consider the elicitation of subjective belief distributions over continuous events using scoring rules with incentives. The theoretical literature suggests that risk attitudes have a surprisingly small role in distorting reports from true belief distributions. We use this theoretical prediction to test… more »