Upside versus downside risk: Gender, stakes, and skewness
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Comeig Ramírez, Irene; Holt, Charles; Jaramillo Gutiérrez, Ainhoa
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Aquest document és un/a article, creat/da en: 2022
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Risky choices often involve a tradeoff between expected payoff and payoff variability. Sub jects in a simple experiment, however, exhibit more aversion to “downside risk” (with a small probability of a low payoff) and more attraction to “upside risk” (with a small prob ability of a high payoff). Women tend to be more averse than men for downside risk, but not for upside risk. These patterns are evaluated in terms of the utility curvature and prob ability weighting components of risk preferences. Gender differences in downside risk are relevant for the design of appropriately gender-tailored policies and algorithms for saving, financing, and entrepreneurship. |
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