Who really wants to be a millionaire?: estimates of risk aversion from gameshow data
2014 (English)In: Journal of applied econometrics (Chichester, England), ISSN 0883-7252, E-ISSN 1099-1255, Vol. 29, no 6, 861-879 p.Article in journal (Refereed) Published
This paper estimates the degree of risk aversion from one of the most popular TV gameshows ever. The format of the show is straightforward; it involves no strategic decision making; we have a large number of observations; and the prizes are cash, which is paid immediately and covers a large range: from 100 pound up to 1 pound million. We provide non-parametric estimates of the utility function and then we test some parametric restrictions. We find that, although the restriction to CRRA utility is statistically rejected, a log function approximates the utility function quite well over a large range of potential winnings.
Place, publisher, year, edition, pages
John Wiley & Sons, 2014. Vol. 29, no 6, 861-879 p.
Research subject Economics; Econometrics
IdentifiersURN: urn:nbn:se:umu:diva-80565DOI: 10.1002/jae.2353ISI: 000343739100001ScopusID: 2-s2.0-84907971639OAI: oai:DiVA.org:umu-80565DiVA: diva2:650411