Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5048077 | China Economic Review | 2008 | 15 Pages |
Abstract
This paper examines Chinese students' risk attitudes using selling and buying experiments with lotteries. We found that subjects were more risk averse during the buying experiment than during the selling experiment, suggesting an endowment effect. In the selling experiment, subjects were risk loving when there was a low win probability and risk averse with a high win probability, whereas they were risk averse in the buying experiment. Using the prize money won during the experiment as a measure of wealth, we found decreasing absolute risk aversion. Subjects' risk attitudes as revealed in the experiments explain their risky asset holding behavior.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Shunichiro SASAKI, Shiyu XIE, Fumio OHTAKE, Jie QIN, Yoshiro TSUTSUI,