Who really wants to be a millionaire? Estimates of risk aversion from gameshow data

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Title: Who really wants to be a millionaire? Estimates of risk aversion from gameshow data
Authors: Hartley, Roger
Lanot, Gauthier
Walker, Ian
Permanent link: http://hdl.handle.net/10197/1878
Date: 10-May-2006
Abstract: 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
Funding Details: Economic and Social Research Council
Type of material: Working Paper
Publisher: University College Dublin. Geary Institute
Series/Report no.: UCD Geary Institute Discussion Paper Series; WP/7/2006
Keywords: Risk aversiongameshow
Subject LCSH: Risk-taking (Psychology)
Television quiz shows
Decision making--Mathematical models
Other versions: http://www.ucd.ie/geary/publications/2006/GearyWp200607.pdf
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Geary Institute Working Papers

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