Time

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Address

Room 464, UNSW Business School, UNSW

Description

March 4, 2019: Daniel Friedman 
Topic: Varieties of Risk Elicitation by Daniel Friedman, Sameh Habib, Duncan James, and Sean Crockett

 
Abstract:
We explore risk preference elicitation via direct choice over lotteries. Tasks range from choice between two lotteries to continuous Arrow portfolio selection; design attributes vary incrementally between adjacent intermediate tasks. Using either parametric (CRRA) or non-parametric (normalized risk premium) measures, the distribution of elicited preferences varies widely across tasks. Variation in elicited preferences across tasks is explained in part by variation in design attributes, such as graphical vs text representation, that have no role in standard decision theory.