Prospect theory in multiple price list experiments: further insights on behaviour in the loss domain

Farmers' risk preferences in 11 European farming systems: A multi‐country replication of Bocquého et al. (2014)

“…We have also assumed that σ and γ do not differ between the loss and gain domains. One could use different lotteries to estimate a five‐parameter CPT specification (with parameters σ+, σ−, λ, γ+, and γ− ) and test for differences of the σ and γ parameters in relation to the reference point (as for instance in Bocquého et al, 2022).…”

An experiment on the link between risk preferences and the willingness to become a farmer

“…The standard error is small for parameters σ and γ , but higher for λ , which is in line with Rommel et al (2023). Note that the greater standard error could be an indication of greater preference heterogeneity in loss aversion (Bocquého et al, 2023). The standard deviation of λ is higher than for σ and γ (see Supporting Information: Appendix ).…”

“…Second, one may focus on increasing the statistical efficiency in risk preferences elicitation for example through adaptive experimental designs (Jobjörnsson et al, 2023; Kasy & Sautmann, 2021) which may involve alternative tasks using for example certainty equivalents (e.g., as in Di Falco & Vieider, 2022). Finally, working with different specifications of the theoretical model could be promising (for instance as in Bocquého et al, 2023 who allow the curvature of the utility function to differ in the gain and loss domains).…”