Now showing 1 - 2 of 2
  • Publication
    Who really wants to be a millionaire? Estimates of risk aversion from gameshow data
    (University College Dublin. Geary Institute, 2006-05-10) ; ;
    This paper analyses the behaviour of TV gameshow contestants to estimate risk aversion. We are able to show that the gameshow participants are broadly representative of the population as a whole. The gameshow has a number of features that makes it well suited for our analysis: the format is extremely straightforward, it involves no strategic decisionmaking, we have a large number of observations, and the prizes are cash and paid immediately, and cover a large range – from £100 up to £1 million. Even though the CRRA model is extremely restrictive we find that a coefficient or relative risk aversion which is close to unity fits the data across a wide range of wealth remarkably well
  • Publication
    Monotonicity and the Roy model
    (University College Dublin. Institute for the Study of Social Change (Geary Institute), 2002-05) ;
    In this note we study the implications on a bivariate normal Roy Model of two sets of monotonicity hypotheses proposed recently by Manski and Pepper (2000). In that simple context, we show that these hypotheses imply strong restrictions on the correlations structure between the decision and the rewards.