Lost in state space: are preferences stable?

Andersen, S.; Lau, M.I.; Harrison, G.W.; Rutstrom, E.

doi:10.1111/j.1468-2354.2008.00507.x

Lost in state space: are preferences stable?

Andersen, S.; Lau, M.I.; Harrison, G.W.; Rutstrom, E.

Authors

S. Andersen

Professor Morten Lau m.i.lau@durham.ac.uk
Professor

G.W. Harrison

E. Rutstrom

Abstract

We use field experiments to examine the temporal stability of risk preferences. Over a 17-month period, we elicited risk preferences from subjects chosen to be representative of the adult Danish population. During this period we revisited many of these subjects and repeated a risk aversion elicitation task. We find some variation in risk attitudes over time, but we do not detect a general tendency for risk attitudes to increase or decrease over a 17-month span. The results also suggest that risk preferences are state contingent with respect to personal finances.

Citation

Andersen, S., Lau, M., Harrison, G., & Rutstrom, E. (2008). Lost in state space: are preferences stable?. International Economic Review, 49(3), 1091-1112. https://doi.org/10.1111/j.1468-2354.2008.00507.x

Journal Article Type	Article
Publication Date	Aug 1, 2008
Deposit Date	Aug 1, 2008
Journal	International Economic Review
Print ISSN	0020-6598
Electronic ISSN	1468-2354
Publisher	Wiley
Peer Reviewed	Peer Reviewed
Volume	49
Issue	3
Pages	1091-1112
DOI	https://doi.org/10.1111/j.1468-2354.2008.00507.x
Public URL	https://durham-repository.worktribe.com/output/1573889