week 3 - Measuring Utility and Preferences through Surveys Flashcards
how do risk avers, risk neutral, and risk loving individuals trade off risk differently
- averse: risky payment needs to have a higher value
- neutral: indifferent when safe and risky option have the same value
- loving: even when the value of the safe option is higher, they may prefer the risky prospect
what does the risk taking experiment tell us (with the rows and when they switch from a safe to risky option)
earlier switching from risky–>safe payment shows risk averse, lower certainty equivalent
what does the time discounting experiment tell us
choosing the option that pays more over a longer period of time shows us patience, switching rows with a lower return shows patience
how is altruism tested
seeing what percentage of endowments one will donate to a charity
how can we test for positive reciprocity
if a player will return a good favour of another player
how is negative reciprocity tested
prisoners dilemma
- nash equilibrium is where neither participants take part
– punishment is costly
why are surveys favoured over experiments
experiments are costly and time consuming
why were there issues with the translation of the preference module
it was written in german so translating gambling in some muslim countries was difficult as gambling is haram
where are the most patient people
english speaking countries + europe
which countries are the most willing to take a risk
middle east and africa
are women or men more risk taking
women are less risk taking and they also show more prosocial behaviour (trust, altruism, positive reciprocity)
are women or men more patient
men
as you get older do you take more risks
no
what has negative reciprocity been found to be linked with
country level armed conflict
what is country level donations and volunteering connected to
social preferences
