Risk Attitude and Market Behavior: Evidence from Experimental Asset Markets

Risk Attitudes and Investment Decisions across European Countries - Are Women More Conservative Investors than Men?

“…Consonant with these findings, Dwyer et al (2002) and Niessen & Ruenzi (2007) show that, for managers of US mutual funds, gender differences are significant even when educational background and work experience are comparable. Finally, Fellner & Maciejovsky (2007) find that women prefer less volatile investments and exhibit lower market activity. For example, they submit fewer offers and engage less often in trades.…”

“…In fact, numerous empirical studies provide evidence of systematic differences in financial risk-taking between men and women (e.g., Bajtelsmit et al (1996), Dwyer et al (2002), Hartog et al (2002), Fellner & Maciejovsky (2007), Agnew et al (2008), Borghans et al (2009)). Nevertheless, the existing evidence seems insufficient to consider women as conservative investors.…”

Risk Attitude and Risk Controllability: Their Implications on the Subjective Quantification of Risk in International Construction Projects

“…In the expected utility framework, choices over lotteries are used to represent the attitudes to risk, shown by a probability distribution, and the utility curvature function will imitate these attitudes. On the other hand, psychological approaches ask the people directly about their willingness and agreement about some questions on risky situations, which directly measures risk attitudes [40]. Another approach that challenges the expected utility theory and measures risk attitude of individuals is prospect theory proposed by Kahneman and Tversky [41].…”

“…Another approach that challenges the expected utility theory and measures risk attitude of individuals is prospect theory proposed by Kahneman and Tversky [41]. Some researchers have used the technique of lottery choices for the risk attitude assessment in the field of both psychology and economy such as Wärneryd [42]; Kahneman and Tversky [41]; Fellner and Maciejovsky [40]; Pennings and Smidts [49]; Dohmen et al [43]; Donkers et al [44]; Kachelmeier and Shehata [45]; Cardenas and Carpenter [46]; and Ye and Wang [47]. Furthermore, some others have used the method of gamble choices to measure attitudes toward risk in various fields like Eckel and Grossman [48]; Binswanger [49]; and Balaz and Williams [50].…”

Bubbles in hybrid markets: How expectations about algorithmic trading affect human trading

“…In our experiment we measure these traits per subjects before trading starts. Robin, Straznicka, and Villeval (2012) and Fellner and Maciejovsky (2007) find that risk-aversion leads to smaller bubbles and less trade in asset market. They follow an approach used by Holt and Laury (2002) (which we will also use) to measure risk aversion.…”