Describe the methodology employed by Dohmen et al. (2011) to measure individual risk preferences and outline the main findings of the study.
Exam question. Consider the following five rows of choices between lottery A and lottery B. Based on these, discuss what would be the choices of risk-averse, risk-neutral, or risk seeking individuals over the five rows. Row Lottery A Lottery B 1 Win €110 or €0 with 50% probability Win €15 with 100% probability 2 Win … Read more