Abstract

http://ssrn.com/abstract=930089
 
 

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Citations (16)



 


 



A Fundamental Prediction Error: Self-Others Discrepancies in Risk Preference


Christopher K. Hsee


University of Chicago - Booth School of Business

Elke U. Weber


Columbia Business School - Management & Psychology


Journal of Experimental Psychology, Vol. 126, No. 1, 1997

Abstract:     
This research examined whether people can accurately predict the risk preferences of others.Three experiments featuring different designs revealed a systematic bias: that participants predicted others to be more risk seeking than themselves in risky choices, regardless of whether the choices were between options with negative outcomes or with positive outcomes. This self-others discrepancy persisted even if a monetary incentive was offered for accurate prediction. However, this discrepancy occurred only if the target of prediction was abstract and vanished if the target was vivid. A risk-as-feelings hypothesis was introduced to explain these findings.

Number of Pages in PDF File: 9

Keywords: risk preference, risk attitude, self-other difference, prediction, false consensus

JEL Classification: D81, D11, D12, D91

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Date posted: October 11, 2006  

Suggested Citation

Hsee, Christopher K. and Weber, Elke U., A Fundamental Prediction Error: Self-Others Discrepancies in Risk Preference. Journal of Experimental Psychology, Vol. 126, No. 1, 1997. Available at SSRN: http://ssrn.com/abstract=930089

Contact Information

Christopher K. Hsee (Contact Author)
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
Elke U. Weber
Columbia Business School - Management & Psychology ( email )
3022 Broadway
New York, NY 10027
United States

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References:  16
Citations:  16

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