Measuring Risk Attitudes Controlling for Personality Traits

35 Pages Posted: 21 Jun 2008 Last revised: 23 Jun 2008

See all articles by Cary A. Deck

Cary A. Deck

University of Alabama - Department of Economics, Finance and Legal Studies

Jungmin Lee

IZA Institute of Labor Economics; FIU

Javier A. Reyes

University of Arkansas - Sam M. Walton College of Business

Chris Rosen

University of Arkansas

Date Written: June 2008

Abstract

This study measures risk attitudes using two paid experiments: the Holt and Laury (2002) procedure and a variation of the game show Deal or No Deal. The participants also completed a series of personality questionnaires developed in the psychology literature including the risk domains of Weber, Blais, and Betz (2002). As in previous studies risk attitudes vary within subjects across elicitation methods. However, this variation can be partially explained by individual personality traits. Specifically, subjects behave as though the Holt and Laury task is an investment decision while the Deal or No Deal task is a gambling decision.

Suggested Citation

Deck, Cary A. and Lee, Jungmin and Lee, Jungmin and Reyes, Javier A. and Rosen, Chris, Measuring Risk Attitudes Controlling for Personality Traits (June 2008). Available at SSRN: https://ssrn.com/abstract=1148521 or http://dx.doi.org/10.2139/ssrn.1148521

Cary A. Deck (Contact Author)

University of Alabama - Department of Economics, Finance and Legal Studies ( email )

P.O. Box 870244
Tuscaloosa, AL 35487
United States

Jungmin Lee

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

FIU ( email )

University Park
11200 SW 8th Street
Miami, FL 33199
United States

Javier A. Reyes

University of Arkansas - Sam M. Walton College of Business ( email )

2 East Center Street
University of Arkansas
Fayetteville, AR 72701
United States
479-575-6079 (Phone)

HOME PAGE: http://economics.uark.edu/directory.php?id=reyes

Chris Rosen

University of Arkansas ( email )

Fayetteville, AR 72701
United States

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