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Who really wants to be a millionaire? Estimates of risk aversion from gameshow data
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Hartley, Roger, Lanot, Gauthier and Walker, Ian (2006) Who really wants to be a millionaire? Estimates of risk aversion from gameshow data. Working Paper. Coventry: University of Warwick, Department of Economics. Warwick economic research papers (No.747).
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Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
Abstract
This paper analyses the behaviour of contestants in one of the most popular TV gameshows ever to estimate risk aversion. This gameshow has a number of features that makes it well suited for our analysis: the format is extremely straightforward, it involves no strategic decision-making, 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. Our data sources have the virtue that we are able to check the representativeness of the gameshow participants. 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.
Item Type: | Working or Discussion Paper (Working Paper) | ||||
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Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management |
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Library of Congress Subject Headings (LCSH): | Who wants to be a millionaire, Game theory, Risk assessment, Choice (Psychology), Rational choice theory | ||||
Series Name: | Warwick economic research papers | ||||
Publisher: | University of Warwick, Department of Economics | ||||
Place of Publication: | Coventry | ||||
Official Date: | 21 April 2006 | ||||
Dates: |
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Number: | No.747 | ||||
Number of Pages: | 54 | ||||
Status: | Not Peer Reviewed | ||||
Access rights to Published version: | Open Access (Creative Commons) | ||||
Description: | Revised version |
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Funder: | Economic and Social Research Council (Great Britain) (ESRC) | ||||
Grant number: | R000239740 (ESRC) |
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