Institutional Affiliation: Kellogg School of Management
NBER Working Papers and Publications
|January 2010||How general are risk preferences? Choices under uncertainty in different domains.|
with Liran Einav, Amy Finkelstein, Mark R. Cullen: w15686
We examine the extent to which an individual's actual insurance and investment choices display a stable ranking in willingness to bear risk, relative to his peers, across different contexts. We do so by examining the same individuals' decisions regarding their 401(k) asset allocations and their choices in five different employer-provided insurance domains, including health and disability insurance. We reject the null that there is no domain-general component of preferences. Among the five insurance domains, the magnitude of the domain-general component of preferences appears substantial; we find for example that one's choices in other insurance domains are substantially more predictive of one's choice in a given insurance domain than either one's detailed demographic characteristics or one...
Published: How General Are Risk Preferences? Choices under Uncertainty in Different Domains, with Amy Finkelstein, Iuliana Pascu, and Mark Cullen American Economic Review, 102(6), October 2012, 2606-2638 citation courtesy of