Fairley, K. and Weitzel, U. (2017). Ambiguity and risk measures in the lab and students’ real-life borrowing behavior Journal of Behavioral and Experimental Economics, 67:85--98.
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Affiliated author
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Publication year2017
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JournalJournal of Behavioral and Experimental Economics
This study analyzes the external validity of experimentally elicited ambiguity aversion, likelihood insensitivity and risk aversion on real-life decision-making in the field of student loans. Our main finding is that ambiguity aversion, likelihood insensitivity and risk aversion are not related to the decision to take out a student loan nor to the amount students decide to borrow, conditional on having a loan. We discuss our results in the context of recent advances to relate lab measures of ambiguity aversion and likelihood insensitivity to real economic decisions.