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Loss Attitudes in the U.S. Population: Evidence from Dynamically Optimized Sequential Experimentation (Dose)

Chapman, Jonathan and Snowberg, Erik and Wang, Stephanie and Camerer, Colin (2018) Loss Attitudes in the U.S. Population: Evidence from Dynamically Optimized Sequential Experimentation (Dose). . (Unpublished) https://resolver.caltech.edu/CaltechAUTHORS:20200327-131600093

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Abstract

We introduce DOSE - Dynamically Optimized Sequential Experimentation - and use it to estimate individual-level loss aversion in a representative sample of the U.S. population (N = 2;000). DOSE elicitations are more accurate, more stable across time, and faster to administer than standard methods. We find that around 50% of the U.S. population is loss tolerant. This is counter to earlier findings, which mostly come from lab/student samples, that a strong majority of participants are loss averse. Loss attitudes are correlated with cognitive ability: loss aversion is more prevalent in people with high cognitive ability, and loss tolerance is more common in those with low cognitive ability. We also use DOSE to document facts about risk and time preferences, indicating a high potential for DOSE in future research.


Item Type:Report or Paper (Working Paper)
Related URLs:
URLURL TypeDescription
https://ssrn.com/abstract=3275438SSRNWorking Paper
ORCID:
AuthorORCID
Camerer, Colin0000-0003-4049-1871
Additional Information:Written: September 13, 2018. Posted: 31 Oct 2018. CESifo Working Paper No. 7262. Thanks to John Beshears, Mark Dean, Kate Johnson, Ian Krajbich, Andreas Krause, Pietro Ortoleva, Deb Ray, Antonio Rangel, Hans-Martin von Gaudecker, Peter Wakker, Nathaniel Wilcox, and the participants of seminars and conferences for their useful comments and suggestions. Judah Okwuobi and Michelle Filiba provided excellent research assistance. Camerer and Snowberg gratefully acknowledge the financial support of NSF Grant SMA1329195. This paper subsumes the earlier, largely methodological, working paper, “Dynamically Optimized Sequential Experimentation (DOSE) for Estimating Economic Preference Parameters,” (2010).
Funders:
Funding AgencyGrant Number
NSFSMA-1329195
Subject Keywords:dynamic experiments, DOSE, loss aversion, risk preferences, time preferences
Other Numbering System:
Other Numbering System NameOther Numbering System ID
CESifo Working Paper7262
Classification Code:JEL: C810, C900, D810, D900
Record Number:CaltechAUTHORS:20200327-131600093
Persistent URL:https://resolver.caltech.edu/CaltechAUTHORS:20200327-131600093
Official Citation:Chapman, Jonathan and Snowberg, Erik and Wang, Stephanie and Camerer, Colin F., Loss Attitudes in the U.S. Population: Evidence from Dynamically Optimized Sequential Experimentation (Dose) (2018). CESifo Working Paper No. 7262. Available at SSRN: https://ssrn.com/abstract=3275438
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:102150
Collection:CaltechAUTHORS
Deposited By: Tony Diaz
Deposited On:27 Mar 2020 20:41
Last Modified:27 Mar 2020 20:41

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