Ruhr Economic Papers

Ruhr Economic Papers #913

Framing Decisions in Experiments on Higher-Order Risk Preferences

by Alexander Haering

RWI, 07/2021, 27 S./p., 8 Euro, ISBN 978-3-96973-058-4 DOI: 10.4419/96973058



In this study I analyze how lottery framing and lottery display type affect the degree of higher-order risk preferences. I explore differences by comparing reduced and compound lottery framing, and by comparing lotteries in an urn-style and in a spinner-style display format. Overall, my findings show that individual behavior is influenced by lottery framing but not by display format.

JEL-Classification: C91, D81

Keywords: Risk aversion; prudence; temperance; higher-order risk preferences; lottery framing