Tag
risk_aversion
7 findings
Behaviour & psychologyClarke Rational Basis Risk RejectionRisk aversion is negatively correlated with stated willingness to pay (p < 0.05) and shows no positive effect on actual uptake (marginal effect = -0.00285, p > 0.10), confirming theoretical models where basis risk reverses standard expected utility predictions.Expert TheoryLabour & employmentEmployer Asymmetric Hire Risk AversionRecruiters overwhelmingly reported that risk management drives screening; negative past experiences with single foreign-experienced hires caused recruiters to categorically penalize subsequent applicants of similar ethnicities, prioritizing safety over peak potential productivity.Observational StudyEconomics (general)Ex-Ante Risk Distortion in Agricultural Input SelectionOffering index insurance induced cultivators to increase harvest labor demand by 0.654 days per mm/day of excess rainfall (t = 2.39), representing a 22% relative increase in labor demand sensitivity under favorable rainfall conditions.RCTLabour & employmentSignal Variance Reduction for Risk-Averse FirmsTheoretical derivation proves that reducing signal noise variance ($\sigma^2$) strictly increases expected match value and wages for any employer risk-aversion coefficient $r < 1.2533$.Expert TheoryFinance & microfinancePeer Monitoring Risk ConstraintPeer monitoring within microfinance groups incentivizes borrowers to select safer, lower-return projects to minimize peer disapproval and social penalties.Expert TheoryFinance & microfinanceRisk-Aversion Heterogeneous Treatment EffectsThe grace period contract increased monthly profits for risk-averse clients (48.5% of the sample) by 92.0% (Rs 1,207.7 to Rs 1,543.6 higher profits, p < 0.05), whereas risk-loving clients experienced no statistically significant additional profit gain (interaction coefficient -Rs 1,243.5 to -Rs 1,557.9).RCTLabour & employmentSignal Variance Reduction ModelReducing signal variance ($\sigma^2$) strictly increases both the unconditional hiring probability $\Phi\left(\frac{-0.5r\sigma^2}{\sqrt{1+\sigma^2}}\right)$ and expected match quality, provided the firm's absolute risk aversion coefficient $r < 1.2533$.Expert Theory