Y2K Bibliography of Experimental Economics and Social Science
Risk Aversion

updated December 29, 1999
Charles A. Holt, cah2k@virginia.edu, suggestions and corrections welcome
(for online and personal use only)

Albers, Wulf, Robin Pope, Bodo Vogt, and Reinhart Selten (1998) “Attractions to Chance: Exploration, Adventure, Challenge, Curiosity, Wonder, Thrills, Kicks, Love of Excitement, Enjoyable Tension,” University of Bonn, Discussion Paper, presented at the Summer 1998 ESA Meeting. Keywords: experiments, decisions, attraction to chance, risk aversion. Abstract: The thesis is that subjects in experiments enjoy an attraction to chance during a pre-outcome period, after a choice is made but before the outcome is known. Email Contact: robin@sfbb4.econ1.uni-bonn.de

Altaf, M. A. (1993) “Attitude Towards Risk: An Empirical Demonstration of Context Dependence,” Journal of Economic Behavior and Organization, 21:1 (May), 91-98. Keywords: experiments, decisions, risk aversion, context dependence.

Ang, James S., and Thomas Schwarz (1985) “Risk Aversion and Information Structure: An Experimental Study of Price Volatility in the Securities Markets,” Journal of Finance, 40(July), 824-844*. Keywords: experiments, markets, asset markets, risk aversion, information.

Arrow, Kenneth J. (1982) “Risk Perception in Psychology and Economics,” Economic Inquiry, 20(1)(January), 1-9. Keywords: experiments, decisions, risk aversion, psychology.

Battalio, Raymond C., John H. Kagel, and Don N. MacDonald (1985) “Animals' Choices over Uncertain Outcomes: Some Initial Experimental Results,” American Economic Review, 75:4 (September), 597-613. Keywords: experiments, decisions, animal subjects, lottery choice, risk aversion, Allais paradox. Email Contact: rcb@esl1.tamu.edu

Beck, J. H. (1994) “An Experimental Test of Preferences for the Distribution of Income and Individual Risk Aversion,” Eastern Economic Journal, 20:2 (Spring), 131-145. Keywords: experiments, decisions, risk aversion.

Belianim, Alexis (1999) “Risk Attitudes and Choice Under Uncertainty: Russian Experimental Data,” University of Manchester, Discussion Paper. Keywords: experiments, decisions, risk preference, elicitation, Russia, international comparisons, subject pool effects.

Berg, Joyce E., Lane A. Daley, John W. Dickhaut, and John O'Brien (1992) “Moral Hazard and Risk Sharing: Experimental Evidence,” in Research in Experimental Economics, Vol. 5, edited by R. M. Isaac, Greenwich, Conn.: JAI Press, 1-34. Keywords: experiments, information, principal agent model, moral hazard, contracts, risk sharing, risk preference inducement, binary lottery method. Abstract In the experiments, a principal contracts with an agent who provides a costly input into the production process, and moral hazard results when contracts cannot be contingent on the agent's decision. Data support agency theory and the subgame perfect equilibrium. Risk preferences are induced with a modified binary lottery procedure. Email Contact: joyce-berg@uiowa.edu

Berg, Joyce E., Lane A. Daley, John W. Dickhaut, and John R. O'Brien (1986) “Controlling Preferences for Lotteries on Units of Experimental Exchange,” Quarterly Journal of Economics, 101:2 (May), 281-306. Keywords: experiments, decisions, risk preferences, risk aversion, induced risk preferences. Email Contact: joyce-berg@uiowa.edu

Berg, Joyce E., and Thomas A. Rietz (1997) “Do Unto Others: A Theory and Experimental Test of Interpersonal Factors in Decision Making Under Uncertainty,” University of Iowa, Discussion Paper. Keywords: experiments, decisions, auctions, bargaining, risk aversion, inequity aversion, altruism, fairness. Abstract: Data from individual choice experiments indicate that subjects are risk neutral or slightly risk averse in lottery-choice tasks, but data from interactive auctions and bargaining games suggest a higher degree of risk aversion. This paper attributes the anomalous effect of the economic institution on risk attitudes to interpersonal utility effects (altruism, competitiveness, fairness, etc.) Email Contact: joyce-berg@uiowa.edu

Bernoulli, Daniel (1738) “Specimen Theoriae Novae de Mensura Sortis (Exposition on a New Theory on the Measurement of Risk,” Comentarii Academiae Scientiarum Imperialis Petropolitanae, 5175-192, translated by L. Sommer in Econometrica, 1954, 22, 23-36. Keywords: experiments, decisions, risk aversion, Bernoulli paradox. Abstract: The Bernoulli paradox, introduced here, describes a lottery with an infinite expected value, for which most individuals are not willing to pay high amounts. The proposed resolution to the paradox in this "thought experiment" is that utility is nonlinear in wealth, i.e. that individuals are risk averse.

Binswanger, Hans P. (1980) “Attitudes toward Risk: Experimental Measurement in Rural India,” American Journal of Agricultural Economics, 62:3 (August), 395-407. Keywords: experiments, decisions, risk aversion, lottery choice, wealth effects, biases. Abstract: High-stakes gambles were presented to rural farmers in India. Attitudes towards risk are measured and correlated with wealth, education, and luck in previous gambles.

Binswanger, Hans P. (1981) “Attitudes toward Risk: Theoretical Implications of an Experiment in Rural India,” Economic Journal, 91:364 (December), 867-890. Keywords: experiments, decisions, lottery choice, risk aversion.

Bone, John, John Hey, and John Suckling (1998) “A Simple Risk-Sharing Experiment,” University of York, Discussion Paper, presented at the Summer 1998 ESA Meetings. Keywords: experiments, decisions, risk sharing, alternating offer bargaining, risk aversion, complexity. Abstract: Pairs of individuals negotiate a division of risk via alternating offers over a computer network. In one treatment, there are only two possible options: equal division and a division that is designed to ensure that it is better for both. Any division is allowed in a second treatment. Reported results include transcribed negotiations. Email Contact: jdb1@york.ac.uk

Bonssort, P., Charles R. Plott, and D. Kleiman (1998) “Experimental Tests of the CAPM as a Model of Equilibrium in Financial Markets,” California Institute of Technology, Working Paper #1032. Keywords: experiments, markets, asset markets, CAPM, risk aversion. Email Contact: cplott@hss.caltech.edu

Brachinger, Hans Wolfgang, Martin Brown, Matthias Gysler, and Renate Schubert (1998) “Financial Choice Behavior - Are Women Really More Risk Averse?,” Swiss Federal Institute of Technology, Discussion Paper, presented at the Summer 1998 ESA Meeting. Keywords: experiments, decisions, risk aversion, subject pool effects, gender effects. Abstract: Do women hold less risky portfolios than men because they are more risk averse, or is it that they have lower wealth levels and face other constraints? This paper reports experiments designed to evaluate gender effects on risky choice in various contexts using several alternative measurement procedures. Email Contact: schubert@wif.reok.ethz.ch

Brown, Paul M., and S. Stewart (1999) “Avoiding Severe Environmental Consequences: Evidence on the Role of Loss Avoidance and Risk Aversion,” Journal of Economic Behavior and Organization, 38:2 (February), 179-198. Keywords: experiments, public, externalities, social dilemmas, risk aversion, loss aversion.

Collins, Richard, and Katerina Sherstyuk (1999) “Spatial Competition with Three Firms: An Experimental Study,” Melbourne University, Discussion Paper, presented at the Spring 1999 Public Choice Meetings. Keywords: experiments, game theory, spatial competition, price competition, risk aversion.

Cox, James C., and Ronald L. Oaxaca (1995) “Inducing Risk-Neutral Preferences: Further Analysis of the Data,” Journal of Risk and Uncertainty, 11:1 (July), 65-79. Keywords: experiments, methodology, auctions, binary lottery method, risk aversion. Email Contact: jcox@bpa.arizona.edu

Cox, James C., Bruce Roberson, and Vernon L. Smith (1982) “Theory and Behavior of Single Object Auctions,” in Research in Experimental Economics, Vol. 2, edited by V. L. Smith, Greenwich, Conn: JAI Press, 1-43. Keywords: experiments, auctions, single unit auctions, risk aversion. Email Contact: jcox@bpa.arizona.edu

Cox, James C., Vernon L. Smith, and James Walker (1983) “Tests of a Heterogeneous Bidder's Theory of First Price Auctions,” Economics Letters, 12:3-4 207-212. Keywords: experiments, auctions, first price auctions, heterogeneous bidders, risk aversion. Email Contact: jcox@bpa.arizona.edu

Cox, James C., Vernon L. Smith, and James M. Walker (1982) “Auction Market Theory of Heterogeneous Bidders,” Economics Letters, 9:4 319-325. Keywords: experiments, auctions, risk aversion, constant relative risk aversion, heterogeneity. Email Contact: jcox@bpa.arizona.edu

Cox, James C., Vernon L. Smith, and James M. Walker (1983) “Theory and Behavior of Heterogeneous Bidders in Multiple Unit Auction,” Economics Letters, 12207-212. Keywords: experiments, auctions, multiple unit auction, constant relative risk aversion, heterogeneity. Email Contact: jcox@bpa.arizona.edu

Cox, James C., Vernon L. Smith, and James M. Walker (1985) “Experimental Development of Sealed-Bid Auction Theory; Calibrating Controls for Risk Aversion,” American Economic Review, 75(May), 160-165. Keywords: experiments, auctions, risk aversion, binary lottery method. Email Contact: jcox@bpa.arizona.edu

Cox, James C., Vernon L. Smith, and James M. Walker (1988) “Theory and Individual Behavior of First-Price Auctions,” Journal of Risk and Uncertainty, 1:1 (March), 61-99. Keywords: experiments, auctions, first price auction, risk aversion. Email Contact: jcox@bpa.arizona.edu

Cox, James C., Vernon L. Smith, and James M. Walker (1992) “Theory and Misbehavior of First-Price Auctions: Comment,” American Economic Review, 82:5 (December), 1392-1412. Keywords: experiments, auctions, first-price auctions, risk aversion, errors, incentives. Email Contact: jcox@bpa.arizona.edu

Cummings, L. L., and D. L. Harnett (1969) “Bargaining Behaviour in a Symmetric Bargaining Triad: The Impact of Risk-Taking Propensity, Information, Communication and Terminal Bid,” Review of Economic Studies, 36:4 (October), 485-501. Keywords: experiments, bargaining, three person bargaining, risk aversion, communication, information.

Dorsey, Rober E., and Laura Razzolini (1998) “Auctions versus Lotteries: Do Institutions Matter?,” University of Mississippi, Discussion Paper, presented at the Summer 1998 ESA Meeting. Keywords: experiments, auctions, lotteries, institutions, risk aversion. Abstract: The experiment compares individual behavior in two theoretically equivalent institutions, a first-price auction and a lottery. Although subjects face the same probability/payoff tradeoffs, they tend to behave in a more risk averse fashion in the auction. This overbidding is particularly strong for those with high values, which may explain the common use of auctions for fundraising purposes. Email Contact: dorsey@bus.olemiss.edu, laura@bus,olemiss.edu

Dyer, Douglas, John H. Kagel, and Dan Levin (1989) “A Comparison of Naive and Experienced Bidders in Common Value Offer Auctions: A Laboratory Analysis,” Economic Journal, 99:394 (March), 108-115. Keywords: experiments, auctions, common value, experience effects, methodology, winner's curse, risk aversion, expert subjects, subject pool effects. Abstract: The first price common value auctions were structured so that the low bidder wins the prize (e.g. construction contract). Overbidding and the winner's curse effect was observed for both student participants and in a session with experts from the construction industry. Differences behavior were attributed to risk aversion among the students and more risk neutral behavior fo the executives. Email Contact: levin.36@osu.edu

Eisenberger, R., and Martin Weber (1995) “Willingness to Pay and Willingness to Accept for Risky and Ambiguous Lotteries,” Journal of Risk and Uncertainty, 10223-233. Keywords: experiments, decisions, elicitation, willingness to pay, WTP/WTA, risk preferences. Email Contact: weber@bank.bwl.uni-mannheim

Friedman, Daniel (1981) “Why There Are No Risk Preferrers,” Journal of Political Economy, 89:3 (June), 600. Keywords: experiments, decisions, risk aversion. Email Contact: dan@cats.ucsc.edu

Friedman, Daniel (1992) “Theory and Misbehavior of First-Price Auctions: Comment,” American Economic Review, 82:5 (December), 1374-1378. Keywords: experiments, auctions, first-price auctions, risk aversion, noisy behavior. Email Contact: dan@cats.ucsc.edu

Friedman, Milton, and L. J. Savage (1948) “The Utility Analysis of Choices Involving Risk,” Journal of Political Economy, 56279-304. Keywords: experiments, decisions, lottery choice, risk aversion.

Gertner, R. (1993) “Game Shows and Economic Behavior: Risk-Taking on "Card Sharks",” Quarterly Journal of Economics, 108:2 (May), 507-521. Keywords: risk aversion, risk preference.

Goeree, Jacob K., Charles A. Holt, and Thomas R. Palfrey (1999) “Quantal Response Equilibrium and Overbidding in Private-Value Auctions,” California Institute of Technology, Keywords: experiments, auctions. private values, logit equilibrium, risk aversion. Abstract: This paper reports the results of a private-values auction experiment in which the expected costs of deviating from the Nash equilibrium bidding function are asymmetric, with more upside risk in one treatment and more downside risk in the other. Overbidding relative to Nash is observed in both treatments, but is more severe in the treatment with lower costs of overbidding. A two-parameter model of constant relative risk aversion and noisy (logit equilibrium) behavior provides a tight fit of bid distributions, and estimates are stable across treatments. Email Contact: jg2n@virginia.edu

Golec, J., and M. Tamarkin (1995) “Do Bettors Prefer Long Shots because They are Risk-Lovers, or Are They Just Overconfident?,” Journal of Risk and Uncertainty, 11:1 (July), 51-64. Keywords: experiments, decisions, betting, risk preference, overconfidence.

Gollier, Christian, and Mark Machina, eds. (1995) Non-expected Utility and Risk Management: A Special Issue of the Geneva Papers on Risk and Insurance Theory, Boston; Dordrecht and London: Kluwer Academic. Keywords: experiments, decisions, risk aversion, insurance.

Green, Leonard, John H. Kagel, and Raymond C. Battalio (1986) “Risk Aversion in Rats Under Varying Levels of Resource Availability,” Journal of Comparative Psychology, (January), 95-100. Keywords: experiments, decisions, risk aversion, animal subjects, rats.

Harlow, W. V., and Keith Brown (1990) “Understanding and Assessing Financial Risk Tolerance: A Biological Perspective,” Financial Analysts Journal, 46(December), 50-62. Keywords: experiments, decisions, lottery choice, risk aversion, biology.

Harrison, Glenn W. (1986) “Risk Aversion and Preference Distortion in Deterministic Bargaining Experiments,” Economics Letters, 22191-196. Keywords: experiments, bargaining, decisions, risk aversion. Email Contact: harrison@darla.badm.sc.edu

Harrison, Glenn W. (1986) “An Experimental Test for Risk Aversion,” Economics Letters, 21:1 7-11. Keywords: experiments, decisions, risk aversion. Email Contact: harrison@darla.badm.sc.edu

Harrison, Glenn W. (1990) “Risk Attitudes in First-Price Auction Experiments: A Bayesian Analysis,” Review of Economics and Statistics, 72:3 (August), 541-546*. Keywords: experiments, auctions, first-price auctions, risk aversion. Email Contact: harrison@darla.badm.sc.edu

Harrison, Glenn W. (1992) “Theory and Misbehavior of First-Price Auctions: Reply,” American Economic Review, 82:5 (December), 1426-1443. Keywords: experiments, auctions, first-price auctions, risk aversion, incentives, errors, payoff dominance. Email Contact: harrison@darla.badm.sc.edu

Holt, Charles A. (1986) “Discussant's Comments on: Incentives, Learning, and Processing of Information in a Market Environment: An Examination of the Base-Rate Fallacy,” in Laboratory Market Research, edited by S. Moriarity, Norman, Ok.: University of Oklahoma, 80-85. Keywords: experiments, markets, asset markets, Bayes' rule, base rate bias, risk aversion. Email Contact: holt@virginia.edu

Holt, Charles A., and Roger Sherman (1995) “Naive Bidding and the Winner's Curse in Auctions with Independent Common Value Components,” University of Virginia, Discussion Paper. Keywords: experiments, auctions, common value, winner's curse, error, risk aversion, naive bidding. Abstract: This paper considers a two-person, common value auction in which the rational bid is independent of risk attitudes. The observed overbidding is attributed to a combination of the winner's curse and risk aversion, which is both inferred from the bidding and measured independently. Email Contact: holt@virginia.edu

Holt, Charles A., and Fernando Solis-Soberon (1992) “The Calculation of Equilibrium Mixed Strategies in Posted-Offer Auctions,” in Research in Experimental Economics, Vol. 5, edited by R. M. Isaac, Greenwich, Conn.: JAI Press, 189-229. Keywords: experiments, game theory, mixed strategies, posted offer auctions, markets, risk aversion, capacity constraints, cost asymmetries. Abstract The "how-to" for calculating equilibrium mixed strategies in the complicated step-function and capacity constrained environments often used in laboratory experiments. The paper discusses ways to deal with multiple steps, cost and capacity asymmetries, risk aversion, etc. Email Contact: holt@virginia.edu

Isaac, R. Mark, and Duncan James (1998) “Just Who Are You Calling Risk Averse,” Journal of Risk and Uncertainty, forthcoming. Keywords: experiments, decisions, risk aversion, auctions, BDM method. Email Contact: misaac@bpa.arizona.edu

Kachelmeier, Steven J., and Mohamed Shehata (1992) “Examining Risk Preferences Under High Monetary Incentives: Experimental Evidence from the People's Republic of China,” American Economic Review, 82:5 (December), 1120-1141. Keywords: experiments, decisions, risk preference, elicitation, high incentives, international comparisons, subject pool effects, China. Email Contact: kach@mail.utexas.edu

Kagel, John H. (1987) “Economics According to the Rats (and Pigeons Too); What Have We Learned and What Can We Hope to Learn?,” in Laboratory Experimentation in Economics: Six Points of View, edited by A. E.. Roth, Cambridge: Cambridge University Press, 155-192. Keywords: experiments, decisions, animal experiments, lottery choice, decisions, risk aversion, labor supply. Email Contact: kagel+@pitt.edu

Kagel, John H. (1995) “Auctions: A Survey of Experimental Research,” in The Handbook of Experimental Economics, edited by J. H. Kagel and A. E. Roth, Princeton: Princeton University Press, 501-585. Keywords: experiments, auctions, private value, common value, institutions, risk aversion, survey, English auctions, Dutch auctions, collusion. Abstract This handbook chapter surveys all aspects of the large literature on auction experiments. Email Contact: kagel+@pitt.edu

Kagel, John H., and Dan Levin (1993) “Independent Private Value Auctions: Bidder Behavior in First-, Second-, and Third-Price Auctions with Varying Numbers of Bidders,” Economic Journal, 103:419 (July), 868-879. Keywords: experiments, auctions, independent private values, first-price auctions, second-price auctions, third-price auctions, numbers effects, risk aversion. Email Contact: kagel+@pitt.edu

Kagel, John H., and Alvin E. Roth (1992) “Theory and Misbehavior in First-Price Auctions: Comment*,” American Economic Review, 82:5 (December), 1379-1391. Keywords: experiments, auctions, first price auctions, risk aversion. Email Contact: kagel+@pitt.edu

Kessler, E. H., C. M. Ford, and J. R. Bailey (1996) “Object Valence as a Moderator of the Framing Effect on Risk Preference,” Journal of Economic Behavior and Organization, 30:2 (August), 241-256. Keywords: experiments, decisions, risk preference, framing effects.

Krahnen, J. P., C. Rieck, and E. Theissen (1997) “Inferring Risk Attitudes from Certainty Equivalents: Some Lessons from an Experimental Study,” Journal of Economic Psychology, 18:5 (September), 469-486. Keywords: experiments, decisions, risk preferences, certainty equivalents, elicitation.

Levy, Hiam (1994) “Absolute and Relative Risk Aversion: An Experimental Study,” Journal of Risk and Uncertainty, 8:3 (May), 289-307. Keywords: experiments, decisions, risk aversion, absolute risk aversion, relative risk aversion. Abstract: Subjects made portfolio choices between safe and risky assets, and under conditions of changing experiment income and outside real wealth. Portfolio choices provide evidence of decreasing absolute risk aversion, but the increasing relative risk aversion hypothesis is rejected. Decisions were more sensitive to laboratory wealth than to outside personal wealth, which had little effect.

Lind, Barry, and Charles R. Plott (1991) “The Winner's Curse: Experiments with Buyers and with Sellers,” American Economic Review, 81:1 (March), 335-346. Keywords: experiments, auctions, winner's curse, risk aversion. Abstract: Note: As a side comment, the authors conjecture that risk aversion be part of the explanation of overbidding in first price common value auctions, but risk aversion cannot account for overbidding in second price common value auctions.

Loomes, Graham, and Uzi Segal (1994) “Observing Different Orders of Risk Aversion,” Journal of Risk and Uncertainty, 9:3 (December), 239-256. Keywords: experiments, decisions, risk aversion. Email Contact: gcl1@york.ac.uk

Lupfer, Michael, Mark Jones, and Lionel Spaulding (1971) “Risk-Taking in Cooperative and Competitive Dyads,” Journal of Conflict Resolution, 15385-392. Keywords: experiments, game theory, risk aversion.

McKee, Michael (1989) “Intra-experimental Income Effects and Risk Aversion,” Economic Letters, 30:2 (August), 109-115. Keywords: experiments, decisions, wealth effects, risk aversion, methodology. Email Contact: mckee@unm.edu

Merlo, A., and Andrew Schotter (1992) “Theory and Misbehavior of First-Price auctions: Comment,” American Economic Review, 82:5 (December), 1413-1425. Keywords: experiments, auctions, risk aversion, incentives.

Miller, Louis, David Edward Meyer, and John T. Lanzetta (1969) “Choice Among Equal Expected Value Alternatives: Sequential Effects of Winning Probability Level on Risk Preferences,” Journal of Experimental Psychology, 79419-425. Keywords: experiments, decisions, risk preference.

Millner, Edward L., and Michael D. Pratt (1990) “A Test of Risk Inducement: Is the Inducement of Risk Neutrality Neutral?,” Department of Economics, Virginia Commonwealth University, Discussion Paper. Keywords: experiments, decisions, binary lottery method, induced risk neutrality, risk preference. Email Contact: emillne@vcu.edu

Millner, Edward L., and Michael D. Pratt (1991) “Risk Aversion and Rent Seeking: An Extension and Some Experimental Evidence,” Public Choice, 69:1 81-92. Keywords: experiments, decisions, risk preference, risk aversion, risk aversion. Email Contact: emillne@vcu.edu

Millner, Edward L., Michael D. Pratt, and Robert J. Reilly (1988) “A Re-examination of Harrison's Experimental Test for Risk Aversion,” Economic Letters, 27:4 317-319. Keywords: experiments, decisions, risk aversion. Email Contact: emillne@vcu.edu

Murnighan, J. Keith, Alvin E. Roth, and Franciose Shoumaker (1987) “Risk Aversion and Bargaining: Some Preliminary Results,” European Economic Review, 31:1/2 (February/March), 265-271. Keywords: experiments, bargaining, risk aversion. Email Contact: keithm@nwu.edu

Murnighan, J. Keith, Alvin E. Roth, and Franciose Shoumaker (1988) “Risk Aversion in Bargaining, and Experimental Study,” Journal of Risk and Uncertainty, 1:1 (March), 101-124. Keywords: experiments, bargaining, risk aversion. Email Contact: keithm@nwu.edu

Ortona, G. (1994) “Examining Risk Preferences Under High Monetary Incentives: Comment,” American Economic Review, 84:4 (September), 1104. Keywords: experiments, decisions, risk preferences, incentives, high stakes.

Piron, Robert, and L. R. Smith (1995) “Testing Risklove in an Experimental Racetrack,” Journal of Economic Behavior and Organization, 27:3 (August), 465-474. Keywords: experiments, decisions, risk preferences. Email Contact: robert.piron@oberlin.edu

Prasnikar, Vesna (1996) “Binary Lottery Payoffs: The Degree of Controlling Risk Aversion,” University of Pittsburgh, Discussion Paper. Keywords: experiments, decisions, binary lottery method, risk aversion.

Rapoport, Amnon, Rami Zwick, and S. G. Funk (1988) “Selection of Portfolios with Risky and Riskless Assets: Experimental Tests of Two Expected Utility Models,” Journal of Economic Psychology, 9:2 (June), ***-***. Keywords: experiments, decisions, portfolio choice, lottery choice, risk preferences. Email Contact: arapoport@bpa.arizona.edu

Rietz, Thomas A. (1993) “Implementing and Testing Risk-Preference-Induction Mechanisms in Experimental Sealed-Bid Auctions,” Journal of Risk and Uncertainty, 7:2 (October), 199-213. Keywords: experiments, decisions, inducing risk preferences, risk aversion, binary lottery method. Email Contact: thomas-rietz@uiowa.edu

Segal, Uzi (1987) “The Ellsberg Paradox and Risk Aversion: An Anticipated Utility Approach,” International Economic Review, 28:1 (February), 175-202. Keywords: experiments, decisions, Ellsberg paradox, risk aversion, anticipated utility.

Selten, Reinhard, Karim Sadreih, and Klaus Abbink (1995) “Money Does Not Induce Risk Neutral Behavior, but Binary Lotteries Do Even Worse,” University of Bonn, Discussion Paper. Keywords: experiments, decisions, binary lottery, risk aversion, methodology. Email Contact: selten@lab.econ1.uni-bonn.de

Sherman, Roger (1967) “Individual Attitude Toward Risk and Choice Between Prisoner's Dilemma Games,” Journal of Psychology, 66291-298. Keywords: experiments, decisions, risk aversion, game theory, prisoner's dilemma, choice of game. Email Contact: rs5w@virginia.edu

Sherman, Roger (1969) “Risk Attitude and Cost Variability in a Capacity Choice Experiment,” The Review of Economic Studies, 36:(4) (108) (October), 453-466. Keywords: experiments, markets, capacity choice, risk preferences, cost variability. Email Contact: rs5w@virginia.edu

Sherman, Roger (1972) Oligopoly, An Empirical Approach, Lexington, Mass: Lexington Books. Keywords: experiments, markets, game theory, capacity choice, risk preferences, cost variability. Email Contact: rs5w@virginia.edu

Smith, Vernon. L., and James M. Walker (1993) “Rewards, Experience and Decision Costs in First Price Auctions,”
Economic Inquiry, 31:2 (April), 237-245*. Keywords: experiments, auctions, methodology, incentives, first-price auctions, noisy behavior, risk aversion. Abstract: In the reported experiment, individual subjects were placed in a private-values, first-price auction, bidding against a known number of computerized bidders programmed to bid a fixed fraction of their random value draws. All earnings were multiplied by a constant that was varied from 1 to 20. Bidding was "as if risk averse," and this overbidding relative to the risk-neutral prediction was positively correlated with increases in the incentive multiplier, holding experience constant. High incentives did reduce measures of noise in bidding. Email Contact: vls@econlab.arizona.edu

Sonnemans, Joep (1998) “Strategies of Search,” Journal of Economic Behavior and Organization, 35:3 309-332. Keywords: experiments, decisions, search, risk aversion, learning. Email Contact: joeps@fee.uva.edu

Suleiman, Ramzi, and Keren Or-Chen (1999) “Providing Step Level Public Goods Under Uncertainty: The Case of Probable External Supply,” in Resolving Social Dilemmas, edited by Margaret Foddy, Michael Smithson, Schneider Sherry and Michael Hogg, Philadelphia: Psychology Press, 149-164. Keywords: experiments, public, voluntary contributions, step-level public goods, risk aversion. Email

Van Boening, Mark V., Stephen J. Rassenti, and Vernon L. Smith (1998) “Numerical Computation of Equilibrium Bid Functions in a First-Price Auction with Heterogeneous Risk Attitudes,” Experimental Economics, 1:2 147-159. Keywords: experiments, auctions, Nash equilibrium, risk aversion, bid functions, numerical methods. Email Contact: vanboen@bus.olemiss.edu

Walker, James M., Vernon L. Smith, and James C. Cox (1990) “Inducing Risk-Neutral Preferences: An Examination in a Controlled Market Environment,” Journal of Risk and Uncertainty, 3:1 (March), 5-24. Keywords: experiments, methodology, binary lottery method, risk preferences, risk aversion, inducing risk neutral preferences. Email Contact: walkerj@indiana.edu