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Who really wants to be a millionaire?: estimates of risk aversion from gameshow data
Umeå universitet, Samhällsvetenskapliga fakulteten, Handelshögskolan vid Umeå universitet, Nationalekonomi.ORCID-id: 0000-0001-9244-7018
University of Manchester. (Economics Department)
Lancaster University. (Economics Department)
2014 (engelsk)Inngår i: Journal of applied econometrics (Chichester, England), ISSN 0883-7252, E-ISSN 1099-1255, Vol. 29, nr 6, s. 861-879Artikkel i tidsskrift (Fagfellevurdert) Published
Abstract [en]

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.

sted, utgiver, år, opplag, sider
John Wiley & Sons, 2014. Vol. 29, nr 6, s. 861-879
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Forskningsprogram
nationalekonomi; ekonometri
Identifikatorer
URN: urn:nbn:se:umu:diva-80565DOI: 10.1002/jae.2353ISI: 000343739100001Scopus ID: 2-s2.0-84907971639OAI: oai:DiVA.org:umu-80565DiVA, id: diva2:650411
Tilgjengelig fra: 2013-09-20 Laget: 2013-09-20 Sist oppdatert: 2018-06-08bibliografisk kontrollert

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Lanot, Gauthier

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