Regret theory and risk attitudes

We examine risk attitudes under regret theory and derive analytical expressions for two components—the resolution and regret premiums—of the risk premium under regret theory. We posit that regret-averse decision makers are risk seeking (resp., risk averse) for low (resp., high) probabilities of gains and that feedback concerning the foregone option reinforces risk attitudes. We test these hypotheses experimentally and estimate empirically both the resolution premium and the regret premium. Our results confirm the predominance of regret aversion but not the risk attitudes predicted by regret theory; they also clarify how feedback affects attitudes toward both risk and regret.     

Left-Side strong increases in risk and their comparative statics

This paper introduces a new concept of left-side strong increases in risk (L-SIR) that extends the definition of strong increases in risk (SIR). We also provide somewhat stronger restrictive set of risk-averse decision-makers with a non-negative third derivative utility (prudence) to obtain an appealing comparative statics result for L-SIR.The authors gratefully acknowledge the helpful comments and suggestions of an anonymous referee     

Incomplete risk attitudes and random choice behavior: an elicitation mechanism

Theory and Decision - In the presence of incomplete risk attitudes, choices between noncomparable risky prospects are random. A random choice model advanced by Karni (Incomplete preferences and...     

Lottery- and survey-based risk attitudes linked through a multichoice elicitation task

We analyze the results from three different risk attitude elicitation methods. First, the broadly used test by Holt and Laury (2002), HL, second, the lottery-panel task by Sabater-Grande and Georgantzis (2002), SG, and third, responses to a survey question on self-assessment of general attitude towards risk (Dohmen et al. 2011). The first and the second task are implemented with real monetary incentives, while the third concerns all domains in life in general. Like in previous studies, the correlation of decisions across tasks is low and usually statistically non-significant. However, when we consider only subjects whose behavior across the panels of the SG task is compatible with constant relative risk aversion (CRRA), the correlation between HL and self-assessed risk attitude becomes significant. Furthermore, the correlation between HL and SG also increases for CRRA-compatible subjects, although it remains statistically non-significant.     

Economic openness and welfare state attitudes: A multilevel study across 67 countries

This article extends previous studies investigating economic globalisation and the welfare state by examining individual attitudes, ranging from a preference for individual responsibility (economic individualism) to public demand for government intervention (social equality), across a large number of countries. It formulates different hypotheses about the direct and moderating effects of economic openness on these attitudes. The multilevel analysis, investigating data from 99,663 citizens of 67 countries, leads to the following two conclusions. First, economic openness is associated with a stronger preference for economic individualism and less demand for government intervention. Second, groups benefiting from globalisation and right‐wing voters have a stronger preference for economic individualism if the economic openness of their country is higher. Key Practitioner Message: ● The results show that some vulnerable groups demand more social protection in economically more open countries.     

Optimality of winner-take-all contests: the role of attitudes toward risk

Journal of Risk and Uncertainty - This paper introduces the Prince incentive system for measuring preferences. Prince combines the tractability of direct matching, allowing for the precise and...     

Recursive expected utility and the separation of attitudes towards risk and ambiguity: an experimental study

We use the multiple price list method and a recursive expected utility theory of smooth ambiguity to separate out attitude towards risk from that towards ambiguity. Based on this separation, we investigate if there are differences in agent behaviour under uncertainty over gain amounts vis-a-vis uncertainty over loss amounts. On an aggregate level, we find that (i) subjects are risk averse over gains and risk seeking over losses, displaying a “reflection effect” and (ii) they are ambiguity neutral over gains and are mildly ambiguity seeking over losses. Further analysis shows that on an individual level, and with respect to both risky and ambiguous prospects, there is limited incidence of a reflection effect where subjects are risk/ambiguity averse (seeking) in gains and seeking (averse) in losses, though this incidence is higher for ambiguous prospects. A very high proportion of such cases of reflection exhibit risk (ambiguity) aversion in gains and risk (ambiguity) seeking in losses, with the reverse effect being significantly present in the case of risk but almost absent in case of ambiguity. Our results suggest that reflection across gains and losses is not a stable individual characteristic, but depends upon whether the form of uncertainty is precise or ambiguous, since we rarely find an individual who exhibits reflection in both risky and ambiguous prospects. We also find that correlations between attitudes towards risk and ambiguity were domain dependent.      

Mean utility preserving increases in risk for state dependent utility functions

This paper defines the concept of a mean utility preserving spread across states (MUPSAS) for state dependent utility functions and analyzes the behavioural impact of shifts in the probability distribution of wealth across states such that overall mean utility is preserved. The main result provides an alternative way of ranking state dependent utility functions according to their degree of risk aversion (thus extending Kami's theorem of comparative risk aversion) and establishes a link between increases in risk and risk aversion for state dependent preferences. In a portfolio problem where preferences and the rate of return of the risky venture are state dependent, we find sufficient conditions to determine the impact of a MUPSAS on the optimal share of the portfolio invested in the risky asset.

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Parents at‐risk and their children: intersections of gender role attitudes and parenting practices

Existing research demonstrates that parent and child gender may influence important aspects of family relationships; however, most research in this area has been conducted with non‐clinical samples. As clinicians, it is important to consider how gender impacts family relationships, particularly among vulnerable families. This study examined the intersections of gender role attitudes and parenting practices among 34 parents involved with the child welfare system and referred for clinical intervention. Using a mixed methods design, themes regarding gender role beliefs and parenting practices were found through qualitative interviews with parents. Findings suggested that fathers felt responsible for financially providing for their families and expressed challenges in communicating with mothers, and mothers described challenges they face because of a lack of father involvement. Parents also discussed a perceived need to monitor daughters closely while fostering the independence of their sons. Results of the qualitative analyses were supported by quantitative findings indicating significant differences in harsh and inconsistent discipline practices and clear expectations for girls compared to boys. The discussion addresses implications for clinicians, including how a feminist family therapy perspective may help promote client influence over traditional gender norms by questioning gender role attitudes and exploring alternate narratives that may impact family dynamics.     

Allais for the poor: Relations to ability,information processing,and risk attitudes

This paper complements evidence on the Allais paradox from advanced countries and educated people by a novel investigation in a poor rural area. The share of Allais-type behavior is indeed high and related to indicators of “lacking ability,” such as poor education, unemployment, and little financial sophistication. Based on prospective reference theory, we extend these characteristics by biased processing of probabilistic information. Finally, we reveal that Allais-type behavior is linked to risk-related characteristics, such as risk tolerance and optimism. This indicates a potential problem as exactly the more dynamic among the poor tend to make inconsistent decisions under uncertainty.     

Rationality on the rise: Why relative risk aversion increases with stake size

How does risk tolerance vary with stake size? This important question cannot be adequately answered if framing effects, nonlinear probability weighting, and heterogeneity of preference types are neglected. We show that the observed increase in relative risk aversion over gains cannot be captured by the curvature of the value function. Rather, it is predominantly driven by a change in probability weighting of a majority group of individuals who weight probabilities of high gains more conservatively. Contrary to gains, no coherent change in relative risk aversion is observed for losses. These results not only challenge expected utility theory, but also prospect theory.     

Determinate attitudes and indeterminate norms

The aim of this paper is to offer a version of social normative pragmatism – that is, the approach that takes norms to be the result of shared practices – that comes closer to social reality than its cousins in the philosophy of language and the philosophy of mind. The purpose is presenting a framework that can be useful for social theorists sympathetic to normative concepts. This version introduces the concepts of the adoption of the normative stance, the projective structure of evaluation and a sketch of a theory of normative force in terms of accumulation of normative attitude. In order to motivate this conceptual tools, we present them as allowing us to overcome the traditional skeptical challenge put forward by Kripke.     

Gender role attitudes and attitudes to abortion: Are there gender differences?

This study examines gender differences in gender role attitudes and attitudes to abortion in a sample of 141 undergraduate students. Religion and religiosity were treated as covariates. Using the short version of Spence and Helmreich's (1978) Attitudes to Women Scale (AWS) taken from Spence and Hahn [Spence, J. T., & Hahn, E. D. (1997). The Attitudes Toward Women Scale and attitude to change in college students. Psychology of Women Quarterly, 21, 17–34] and the abortion attitudes scale developed by Stets and Leik [Stets, J. E., & Leik, R. K. (1993). Attitudes about abortion and varying attitude structures. Social Science Research, 22, 265–282], we found that females have more liberal attitudes to women and show stronger approval for women's autonomy in abortion decision-making. Given the low internal consistency of this three-item subscale, responses to the individual items were analyzed. More males than females feel that the father should have the right to prevent the mother from having an abortion. Most of the students indicate that the woman should have to tell the father before having an abortion and most disagree that the abortion is entirely a woman's decision. There were no gender differences on the moral acceptability and availability subscales. The overall results reflect somewhat conservative attitudes to women, and seemingly contradictory findings on the abortion issue in this sample of university students. Although they endorse the availability of abortion, at the same time they find it morally unacceptable and show weak support for women's autonomy in this decision. The implications of these findings for the advancement of women's rights in this country are discussed.     

Dyadic characteristics of guanxi and their consequences

Research on guanxi is conducted principally within the disciplines of anthropology, business studies and sociology. It typically takes the form of empirical case studies, applications of extrinsic theory and literature reviews cum trend reports. The present paper, on the other hand, provides an analysis of guanxi in consideration of its elemental relations, components and properties. Discussion indicates the limitations of treatments of guanxi in terms of trust, guanxi bases, tie‐strength and the conveyance of influence and information. Having established the characteristic features of guanxi discussion then turns to how it may be an option or choice of commitment for persons and groups in contemporary China, its form and role in marketized exchanges, and how the efficiency of guanxi may be characterized.     

经济全球化与国家经济发展问题

经济全球化与国家经济发展之间有着内在联系 ,经济全球化是在经济生活国际化的基础上发展起来的。面对经济全球化进程对国家经济发展的挑战 ,各国政府应正确认识经济全球化与国家经济发展之间的关系 ,以便制定灵活务实的对外经济战略与政策     

经济全球化的理想与理想的经济全球化

经济全球化的理想因主体不同而异。发达国家的经济全球化的理想是更发达,并能主导世界和经济全球化本身;发展中国家的经济全球化的理想是能尽快的发展,并能使自己与发达国家的差距缩小,改变自己在世界格局中的不利地位;两者应统一到理想的经济全球化上来。理想的经济全球化是发达国家的经济要进一步发展,发展中国家的经济要以更高的速度向前发展,两者的差距要缩小,建立新的国际经济秩序。可通过适当的路径,有条件实施战略性贸易政策来实现。     

Emotional decision-makers and anomalous attitudes towards information

We use a simple version of the Psychological Expected Utility Model (Caplin and Leahy, Q J Econ 116:55–80, 2001) to analyze the optimal choice of information accuracy by an individual who is concerned with anticipatory feeling. The individual faces the following trade-off: on the one hand information may lead to emotional costs, on the other the higher the information accuracy, the higher the efficiency of decision-making. We completely and explicitly characterize how anticipatory utility depends on information accuracy, and study the optimal amount of information acquisition. We obtain simple and explicit conditions under which the individual prefers no-information or partial information gathering. We show that anomalous attitudes towards information can be more frequent and articulated than previously thought.     

Ethics-AnImportant Variablein Economic Activities and Economic Research

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