Measuring Price Risk Aversion through Indirect Utility Functions: A Laboratory Experiment

• Published in: Games Vol. 13; no. 4; p. 56
• Main Author: Zeytoon-Nejad, Ali
• Format: Journal Article
• Language: English
• Published: Basel MDPI AG 01.08.2022
• Subjects: Attitudes; Context; Decision making; Demand curves; Design; direct utility function; Economics; Expected utility; Experiments; Gender; indirect utility function; Laboratories; Lotteries; multiple price list; Payoffs; Risk; risk attitudes; Risk aversion; risk premium; Risk premiums; Sociodemographics; Statistical tests; Utility functions; Utility theory; North Carolina; United States > US

The present paper introduces a theoretical framework through which the degree of risk aversion with respect uncertain prices can be measured through the context of the indirect utility function (IUF) using a lab experiment. First, the paper introduces the main elements of the duality theory (DT) in...