A note on optimal experimentation under risk aversion
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985998%3A_____%2F19%3A00500830" target="_blank" >RIV/67985998:_____/19:00500830 - isvavai.cz</a>
Alternative codes found
RIV/00216208:11640/19:00517854
Result on the web
<a href="https://doi.org/10.1016/j.jet.2018.11.006" target="_blank" >https://doi.org/10.1016/j.jet.2018.11.006</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.jet.2018.11.006" target="_blank" >10.1016/j.jet.2018.11.006</a>
Alternative languages
Result language
angličtina
Original language name
A note on optimal experimentation under risk aversion
Original language description
In a standard two-armed bandit setup, this paper shows – counterintuitively – that a more risk-averse decision maker might be more willing to take risky actions. The reason relates to the fact that pulling the risky arm in bandit models produces information on the environment – thereby reducing the risk that a decision maker will face in the future. This finding gives reason for caution when inferring risk preferences from observed actions: in a bandit setup, observing a greater appetite for risky actions can actually be indicative of more risk aversion, not less.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50201 - Economic Theory
Result continuities
Project
—
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2019
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Journal of Economic Theory
ISSN
0022-0531
e-ISSN
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Volume of the periodical
179
Issue of the periodical within the volume
January
Country of publishing house
US - UNITED STATES
Number of pages
12
Pages from-to
476-487
UT code for WoS article
000456901200014
EID of the result in the Scopus database
2-s2.0-85057876579