Higher Order Risk Attitudes, Demographics, and Financial Decisions

  title={Higher Order Risk Attitudes, Demographics, and Financial Decisions},
  author={Charles N. Noussair and Stefan T. Trautmann and Gijs van de Kuilen},
  journal={ERN: Experimental Individual Decision Making (Topic)},
We conduct an experiment to study the prevalence of the higher order risk attitudes of prudence and temperance, in a large demographically representative sample, as well as in a sample of undergraduate students. Participants make pairwise choices between lotteries of the form proposed by Eeckhoudt and Schlesinger (2006). The choices in these lotteries isolate prudent from imprudent, and temperate from intemperate, behavior. We relate individuals’ risk aversion, prudence, and temperance levels… 
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