Abstract
Risk theories typically assume individuals make risky choices using probability weights that differ from objective probabilities. Recent theories suggest that probability weights vary depending on which portion of a risky environment is made salient. Using experimental data we show that salience affects young men and women differently, even after controlling for cognitive and non-cognitive skills. Men are significantly more likely than women to switch from a certain to a risky choice once the upside of winning is made salient, even though the expected value of the choice remains the same.
Original language | English |
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Pages (from-to) | 517-520 |
Number of pages | 4 |
Journal | Economics Letters |
Volume | 117 |
Issue number | 2 |
DOIs | |
Publication status | Published - Nov 2012 |