Prospect Theory Around the World
37 Pages Posted: 10 Nov 2011
Date Written: October 31, 2011
We present results from the first large-scale international survey on risk preferences, conducted in 45 countries. We show substantial cross-country differences in risk aversion, loss aversion and probability weighting. Moreover, risk attitudes in our sample depend not only on economic conditions, but also on cultural factors, as measured by the Hofstede dimensions Individuality and Uncertainty Avoidance. The presented data might also serve as an interesting starting point for further research in cultural economics.
Keywords: Risk preferences, prospect theory, cross-cultural comparison
JEL Classification: D90, F40
Suggested Citation: Suggested Citation