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Handbook of the Economics of Risk and Uncertainty
book

Handbook of the Economics of Risk and Uncertainty

by Mark Machina, W. Kip Viscusi
November 2013
Beginner content levelBeginner
896 pages
35h 10m
English
North Holland
Content preview from Handbook of the Economics of Risk and Uncertainty
Charles A. Holt and Susan K. Laury
150
hypothetical had little or no effect on overall decision patterns. Models with increasing
relative risk aversion will be considered in Section 4.7.
4.2.4 Price Based Assessments of a Certainty Equivalent
In addition to the investment method (a single choice among a structured set of alterna-
tive portfolios) and the choice menu method (structured binary choices), there is a third
approach to risk elicitation that is based on finding a subject’s certainty equivalent
money value of a gamble. Harrison (1986) first used the Becker et al. (1964) method to
determine certainty equivalents for a set of gambles with ...
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Publisher Resources

ISBN: 9780444536853