Daniel Friedman | Varieties of risk elicitation
Note: Monday instead of Tuesday seminar
Time
04/03/2019 - 12:00 - 13:00
Address
BUS 205, Level 2, UNSW Business School (Building E12)
Description
- March 04, 2019
- Speaker: Daniel Friedman, Sameh Habib, Duncan James, and Sean Crockett
- Topic: Varieties of Risk Elicitation
Abstract
We explore risk preference elicitation via direct choice over lotteries. Tasks range from choice between two lotteries to continuous Arrow portfolio selection; design attributes vary incrementally between adjacent intermediate tasks. Using either parametric (CRRA) or non-parametric (normalized risk premium) measures, the distribution of elicited preferences varies widely across tasks. Variation in elicited preferences across tasks is explained in part by variation in design attributes, such as graphical vs text representation, that have no role in standard decision theory.