The Experts below are selected from a list of 291 Experts worldwide ranked by ideXlab platform
Luigi Zingales - One of the best experts on this subject based on the ideXlab platform.
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time varying risk Aversion
Journal of Financial Economics, 2018Co-Authors: Luigi Guiso, Paola Sapienza, Luigi ZingalesAbstract:We use a repeated survey of an Italian bank’s clients to test whether investors’ risk Aversion increases following the 2008 financial crisis. We find that both a qualitative and a quantitative measure of risk Aversion increases substantially after the crisis. After considering standard explanations, we investigate whether this increase might be an emotional response (fear) triggered by a scary experience. To show the plausibility of this conjecture, we conduct a lab experiment. We find that subjects who watched a horror movie have a certainty equivalent that is 27% lower than the ones who did not, supporting the fear-based explanation. Finally, we test the fear-based model with actual trading behavior and find consistent evidence.
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time varying risk Aversion
Journal of Financial Economics, 2018Co-Authors: Luigi Guiso, Paola Sapienza, Luigi ZingalesAbstract:Abstract Exploiting portfolio data and repeated surveys of an Italian bank's clients, we test whether investors’ risk Aversion increases following the 2008 crisis. We find that, after the crisis, both qualitative and quantitative measures of risk Aversion increase substantially and that affected individuals divest more stock. We investigate four explanations: changes in wealth, expected income, perceived probabilities, and emotion-based changes of the utility function. Our data are inconsistent with the first two channels, while they suggest that fear is a potential mechanism underlying financial decisions, whether by increasing the curvature of the utility function or the salience of negative outcomes.
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time varying risk Aversion
Research Papers in Economics, 2013Co-Authors: Luigi Guiso, Paola Sapienza, Luigi ZingalesAbstract:We use a repeated survey of a large sample of clients of an Italian bank to measure possible changes in investors’ risk Aversion following the 2008 financial crisis. We find that both a qualitative and a quantitative measure of risk Aversion increase substantially after the crisis. These changes are correlated with changes in portfolio choices, but do not seem to be correlated with “standard” factors that affect risk Aversion, such as wealth, consumption habit, and background risk. This opens the possibility that psychological factors might be driving it. To test whether a scary experience (as the financial crisis) can trigger large increases in risk Aversion, we conduct a lab experiment. We find that indeed students who watched a scary video have a certainty equivalent that is 27% lower than the ones who did not. Following a sharp drop in stock prices,a fear model predicts that individuals should sell stocks, while the habit model has the opposite implications; people should actively buy stocks to bring the risky assets to the new optimal level. We show that after the drop in stock prices in 2008 individuals rebalanced their portfolio in a way consistent to a fear model.
Radmila Trifunovic - One of the best experts on this subject based on the ideXlab platform.
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lateral parabrachial nucleus lesions in the rat neophobia and conditioned taste Aversion
Brain Research Bulletin, 2001Co-Authors: Steve Reilly, Radmila TrifunovicAbstract:The present study investigated the hypothesis that the conditioned taste Aversion (CTA) deficit consequent to lesions of the lateral parabrachial nucleus (LPBN) may be due to a disruption of neophobia. In Experiment 1, subjects were tested with one of three taste stimuli (alanine, saccharin, or quinine) and two nontaste stimuli (capsaicin and almond odor). Ibotenic acid lesions of the LPBN eliminated neophobia to alanine and saccharin but had no influence on the neophobic response to quinine, capsaicin, or almond odor. In Experiment 2, all the LPBN-lesioned (LPBNX) rats failed to develop a CTA. These results do not support the experimental hypothesis. Not only was the lesion-induced disruption of neophobia restricted to taste stimuli, the deficit was selective within that category. It is already known that LPBNX rats are unable to acquire conditioned Aversions to capsaicin as well as alanine. Thus, the absence of a conditioned ingestional Aversion in LPBNX rats is not predicated upon the absence of a neophobic response to the target stimulus. The present results, although exposing a stimulus selective disruption of neophobia, suggest that this deficit is independent of, rather than responsible for, the absence of conditioned ingestional Aversions in rats with LPBN lesions.
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Lateral parabrachial nucleus lesions in the rat: aversive and appetitive gustatory conditioning.
Brain research bulletin, 2000Co-Authors: Steve Reilly, Radmila TrifunovicAbstract:Previous research involving tests of innate preferences and Aversions shows that bilateral ibotenic acid lesions of the visceral neurons located in the lateral parabrachial nucleus of the pons selectively disrupt consumption of those gustatory stimuli whose intake is augmented or restricted by their postoral consequences. The present study examined the performance of the same experimental subjects in learned preference and Aversion tasks. The lesioned rats failed to develop a conditioned taste Aversion (Experiment 1), a conditioned flavor preference (Experiment 2), and a conditioned Aversion to the oral trigeminal stimulus, capsaicin (Experiment 3). The pattern of results from both types of taste-guided behaviors (innate and learned) suggests that excitotoxic lesions of the lateral parabrachial nucleus diminish sensitivity to gastrointestinal feedback which, in the present experiments, precludes aversive and appetitive associative learning.
Steve Reilly - One of the best experts on this subject based on the ideXlab platform.
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lateral parabrachial nucleus lesions in the rat neophobia and conditioned taste Aversion
Brain Research Bulletin, 2001Co-Authors: Steve Reilly, Radmila TrifunovicAbstract:The present study investigated the hypothesis that the conditioned taste Aversion (CTA) deficit consequent to lesions of the lateral parabrachial nucleus (LPBN) may be due to a disruption of neophobia. In Experiment 1, subjects were tested with one of three taste stimuli (alanine, saccharin, or quinine) and two nontaste stimuli (capsaicin and almond odor). Ibotenic acid lesions of the LPBN eliminated neophobia to alanine and saccharin but had no influence on the neophobic response to quinine, capsaicin, or almond odor. In Experiment 2, all the LPBN-lesioned (LPBNX) rats failed to develop a CTA. These results do not support the experimental hypothesis. Not only was the lesion-induced disruption of neophobia restricted to taste stimuli, the deficit was selective within that category. It is already known that LPBNX rats are unable to acquire conditioned Aversions to capsaicin as well as alanine. Thus, the absence of a conditioned ingestional Aversion in LPBNX rats is not predicated upon the absence of a neophobic response to the target stimulus. The present results, although exposing a stimulus selective disruption of neophobia, suggest that this deficit is independent of, rather than responsible for, the absence of conditioned ingestional Aversions in rats with LPBN lesions.
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Lateral parabrachial nucleus lesions in the rat: aversive and appetitive gustatory conditioning.
Brain research bulletin, 2000Co-Authors: Steve Reilly, Radmila TrifunovicAbstract:Previous research involving tests of innate preferences and Aversions shows that bilateral ibotenic acid lesions of the visceral neurons located in the lateral parabrachial nucleus of the pons selectively disrupt consumption of those gustatory stimuli whose intake is augmented or restricted by their postoral consequences. The present study examined the performance of the same experimental subjects in learned preference and Aversion tasks. The lesioned rats failed to develop a conditioned taste Aversion (Experiment 1), a conditioned flavor preference (Experiment 2), and a conditioned Aversion to the oral trigeminal stimulus, capsaicin (Experiment 3). The pattern of results from both types of taste-guided behaviors (innate and learned) suggests that excitotoxic lesions of the lateral parabrachial nucleus diminish sensitivity to gastrointestinal feedback which, in the present experiments, precludes aversive and appetitive associative learning.
Paola Sapienza - One of the best experts on this subject based on the ideXlab platform.
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time varying risk Aversion
Journal of Financial Economics, 2018Co-Authors: Luigi Guiso, Paola Sapienza, Luigi ZingalesAbstract:We use a repeated survey of an Italian bank’s clients to test whether investors’ risk Aversion increases following the 2008 financial crisis. We find that both a qualitative and a quantitative measure of risk Aversion increases substantially after the crisis. After considering standard explanations, we investigate whether this increase might be an emotional response (fear) triggered by a scary experience. To show the plausibility of this conjecture, we conduct a lab experiment. We find that subjects who watched a horror movie have a certainty equivalent that is 27% lower than the ones who did not, supporting the fear-based explanation. Finally, we test the fear-based model with actual trading behavior and find consistent evidence.
-
time varying risk Aversion
Journal of Financial Economics, 2018Co-Authors: Luigi Guiso, Paola Sapienza, Luigi ZingalesAbstract:Abstract Exploiting portfolio data and repeated surveys of an Italian bank's clients, we test whether investors’ risk Aversion increases following the 2008 crisis. We find that, after the crisis, both qualitative and quantitative measures of risk Aversion increase substantially and that affected individuals divest more stock. We investigate four explanations: changes in wealth, expected income, perceived probabilities, and emotion-based changes of the utility function. Our data are inconsistent with the first two channels, while they suggest that fear is a potential mechanism underlying financial decisions, whether by increasing the curvature of the utility function or the salience of negative outcomes.
-
time varying risk Aversion
Research Papers in Economics, 2013Co-Authors: Luigi Guiso, Paola Sapienza, Luigi ZingalesAbstract:We use a repeated survey of a large sample of clients of an Italian bank to measure possible changes in investors’ risk Aversion following the 2008 financial crisis. We find that both a qualitative and a quantitative measure of risk Aversion increase substantially after the crisis. These changes are correlated with changes in portfolio choices, but do not seem to be correlated with “standard” factors that affect risk Aversion, such as wealth, consumption habit, and background risk. This opens the possibility that psychological factors might be driving it. To test whether a scary experience (as the financial crisis) can trigger large increases in risk Aversion, we conduct a lab experiment. We find that indeed students who watched a scary video have a certainty equivalent that is 27% lower than the ones who did not. Following a sharp drop in stock prices,a fear model predicts that individuals should sell stocks, while the habit model has the opposite implications; people should actively buy stocks to bring the risky assets to the new optimal level. We show that after the drop in stock prices in 2008 individuals rebalanced their portfolio in a way consistent to a fear model.
Marie Claire Villeval - One of the best experts on this subject based on the ideXlab platform.
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embezzlement and guilt Aversion
Social Science Research Network, 2018Co-Authors: Giuseppe Attanasi, Claire Rimbaud, Marie Claire VillevalAbstract:Psychological game theory can contribute to renew the analysis of unethical behavior by providing insights on the nature of the moral costs of dishonesty. We investigate the moral costs of embezzlement in situations where donors need intermediaries to transfer their donations to recipients and where donations can be embezzled before they reach the recipients. We design a novel three-player Embezzlement Mini-Game to study whether intermediaries in the laboratory suff er from guilt Aversion and whether guilt Aversion aff ects the decision to embezzle. We show that the proportion of guilt-averse intermediaries is the same irrespective of the direction of guilt and guilt Aversion reduces embezzlement. Structural estimates indicate no diff erence in the eff ect of guilt Aversion toward the donor and toward the recipient on intermediaries' behavior. This is striking as embezzlement aff ects the earnings of the recipient but not those of the donor. It shows that guilt Aversion matters even when decisions have no direct monetary consequences.
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Embezzlement and Guilt Aversion
2018Co-Authors: Giuseppe Attanasi, Claire Rimbaud, Marie Claire VillevalAbstract:Donors usually need intermediaries to transfer their donations to recipients. A risk is that donations can be embezzled before they reach the recipients. Using psychological game theory, we design a novel three-player Embezzlement Mini-Game to study whether intermediaries suffer from guilt Aversion and whether guilt Aversion toward the recipient is stronger than toward the donor. Testing the predictions of the model in a laboratory experiment, we show that the proportion of guilt-averse intermediaries is the same irrespective of the direction of the guilt. However, structural estimates indicate that the effect of guilt on behaviour is higher when the guilt is directed toward the recipient.
