On the Stability of Preferences: Repercussions of Entrepreneurship on Risk Attitudes

Abstract

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Peer effects and risk-taking among entrepreneurs: Lab-in-the-field evidence

“…Cramer et al (2002) raise the possibility of reverse causality, finding a negative effect of risk aversion on entry into entrepreneurship but questioning the causality of the relationship. Brachert and Hyll (2014) find that entry into entrepreneurship is associated with an increased willingness to take risks and argue that this entry may cause a change in risk attitudes for several reasons; our evidence suggests that social interactions with other entrepreneurs could be one of these reasons.…”

Income in jeopardy: How losing employment affects the willingness to take risks

“…For primarily methodological discussions of the survey item seeDohmen et al (2011) andCharness et al (2013). For recent applications of the item see, for instance, Pannenberg (2010), Jaeger et al (2010),, 2015a, 2015b, Brachert and Hyll (2014,Skriabikova et al (2014),Fossen and Glocker (2014),Görlitz and Tamm (2015),Schurer (2015),Goebel et al (2015).…”

Risk, Uncertainty and Entrepreneurship: Evidence from a Lab-in-the-Field Experiment

“…Overall, the Dohmen question scores highly on re-test reliability within-person and has been shown to be virtually stable over re-test intervals ranging from three weeks up to almost two years (see Dohmen et al, 2007, andLonnqvist et al, 2011). However, a recent study by Brachert and Hyll (2014) shows that occupational choices may affect the Dohmen test outcomes.…”

“…Although the general consensus tends to be that preferences in the domain of risk and uncertainty are stable (see e.g. Borghans et al, 2008, Sahm, 2012, and Fouarge et al, 2014, a recent study by Brachert and Hyll (2014) cast serious doubt on the stability of these preferences. Therefore, the descriptive nature of the study prevents us from drawing causal conclusions.…”