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Exploring the consistency of higher-order risk preferences.

Haering, A. and Heinrich, T. and Mayrhofer, T. (2020) 'Exploring the consistency of higher-order risk preferences.', International economic review., 61 (1). pp. 283-320.


This study measures higher‐order risk preferences and their consistency. We explore the role of country differences, the variation of stakes, and the framing of lotteries. We observe a robust dichotomous pattern of choice behavior in China, in the USA and in Germany. The majority of choices are consistent with mixed risk aversion or mixed risk‐loving behavior. We also find this pattern after a tenfold increase in the stakes. Finally, our results reveal that this pattern is strengthened if the lotteries are displayed in compound rather than reduced form. In a follow‐up study we explore potential explanations for this framing effect.

Item Type:Article
Full text:Publisher-imposed embargo until 11 January 2022.
(AM) Accepted Manuscript
First Live Deposit - 25 June 2019
File format - PDF
Publisher Web site:
Publisher statement:This is the accepted version of the following article: Haering, A., Heinrich,T. & Mayrhofer,T. (2020). Exploring the consistency of higher-order risk preferences. International Economic Review 61(1): 283-320, which has been published in final form at This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
Record Created:25 Jun 2019 11:13
Last Modified:13 Feb 2020 09:59

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