Ambiguity and risk measures in the lab and students’ real-life borrowing behavior

Kim Fairley; Utz Weitzel

doi:10.1016/j.socec.2016.12.001

Ambiguity and risk measures in the lab and students’ real-life borrowing behavior

Kim Fairley^*, Utz Weitzel

^*Corresponding author for this work

Research output: Contribution to Journal › Article › Academic › peer-review

Abstract

This study analyzes the external validity of experimentally elicited ambiguity aversion, likelihood insensitivity and risk aversion on real-life decision-making in the field of student loans. Our main finding is that ambiguity aversion, likelihood insensitivity and risk aversion are not related to the decision to take out a student loan nor to the amount students decide to borrow, conditional on having a loan. We discuss our results in the context of recent advances to relate lab measures of ambiguity aversion and likelihood insensitivity to real economic decisions.

Original language	English
Pages (from-to)	85-98
Number of pages	14
Journal	Journal of Behavioral and Experimental Economics
Volume	67
DOIs	https://doi.org/10.1016/j.socec.2016.12.001
Publication status	Published - 1 Apr 2017
Externally published	Yes

Keywords

Ambiguity aversion
Borrowing behavior
Likelihood insensitivity
Risk aversion
Student loans

Access to Document

10.1016/j.socec.2016.12.001

Handle.net

Persistent link

Cite this

@article{7851355dd4504db69f8942fd93abc2ec,

title = "Ambiguity and risk measures in the lab and students{\textquoteright} real-life borrowing behavior",

abstract = "This study analyzes the external validity of experimentally elicited ambiguity aversion, likelihood insensitivity and risk aversion on real-life decision-making in the field of student loans. Our main finding is that ambiguity aversion, likelihood insensitivity and risk aversion are not related to the decision to take out a student loan nor to the amount students decide to borrow, conditional on having a loan. We discuss our results in the context of recent advances to relate lab measures of ambiguity aversion and likelihood insensitivity to real economic decisions.",

keywords = "Ambiguity aversion, Borrowing behavior, Likelihood insensitivity, Risk aversion, Student loans",

author = "Kim Fairley and Utz Weitzel",

year = "2017",

month = apr,

day = "1",

doi = "10.1016/j.socec.2016.12.001",

language = "English",

volume = "67",

pages = "85--98",

journal = "Journal of Behavioral and Experimental Economics",

issn = "2214-8043",

publisher = "Elsevier Inc.",

}

TY - JOUR

T1 - Ambiguity and risk measures in the lab and students’ real-life borrowing behavior

AU - Fairley, Kim

AU - Weitzel, Utz

PY - 2017/4/1

Y1 - 2017/4/1

N2 - This study analyzes the external validity of experimentally elicited ambiguity aversion, likelihood insensitivity and risk aversion on real-life decision-making in the field of student loans. Our main finding is that ambiguity aversion, likelihood insensitivity and risk aversion are not related to the decision to take out a student loan nor to the amount students decide to borrow, conditional on having a loan. We discuss our results in the context of recent advances to relate lab measures of ambiguity aversion and likelihood insensitivity to real economic decisions.

AB - This study analyzes the external validity of experimentally elicited ambiguity aversion, likelihood insensitivity and risk aversion on real-life decision-making in the field of student loans. Our main finding is that ambiguity aversion, likelihood insensitivity and risk aversion are not related to the decision to take out a student loan nor to the amount students decide to borrow, conditional on having a loan. We discuss our results in the context of recent advances to relate lab measures of ambiguity aversion and likelihood insensitivity to real economic decisions.

KW - Ambiguity aversion

KW - Borrowing behavior

KW - Likelihood insensitivity

KW - Risk aversion

KW - Student loans

UR - http://www.scopus.com/inward/record.url?scp=85008877236&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85008877236&partnerID=8YFLogxK

U2 - 10.1016/j.socec.2016.12.001

DO - 10.1016/j.socec.2016.12.001

M3 - Article

AN - SCOPUS:85008877236

VL - 67

SP - 85

EP - 98

JO - Journal of Behavioral and Experimental Economics

JF - Journal of Behavioral and Experimental Economics

SN - 2214-8043

ER -

Ambiguity and risk measures in the lab and students’ real-life borrowing behavior

Abstract

Keywords

Access to Document

Handle.net

Other files and links

Fingerprint

Cite this