Ontology highlight
ABSTRACT:
SUBMITTER: Lipman SA
PROVIDER: S-EPMC6771755 | biostudies-literature | 2019 Aug
REPOSITORIES: biostudies-literature
Lipman Stefan A SA Lipman Stefan A SA Attema Arthur E AE
Health economics 20190619 8
Many health economic studies assume expected utility maximisation, with typically a concave utility function to capture risk aversion. Given these assumptions, Rabin's paradox (RP) involves preferences over mixed gambles yielding moderate outcomes, where turning down such gambles imply absurd levels of risk aversion. Although RP is considered a classic critique of expected utility, no paper has as of yet fully tested its preferences within individuals. In an experiment we report a direct test of ...[more]