Risky Choice in the Limelight

  title={Risky Choice in the Limelight},
  author={Guido Baltussen and Martijn J. van den Assem and Dennie van Dolder},
  journal={Review of Economics and Statistics},
Abstract This paper examines how risk behavior in the limelight differs from that in anonymity. In two separate experiments, we find that subjects are more risk averse in the limelight. However, risky choices are similarly path dependent in the different treatments. Under both limelight and anonymous laboratory conditions, a simple prospect theory model with a path-dependent reference point provides a better explanation for subjects’ behavior than a flexible specification of expected utility… 
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