AER publication by Matthias Sutter and Sebastian Schneider

A new paper by Matthias Sutter and Sebastian Schneider has been accepted for publication and is now forthcoming in the American Economic Review – one of the most prestigious journals in economics.

Their study, “Risk Preferences and Field Behavior: The Relevance of Higher-Order Risk Preferences,” shows that higher-order risk preferences such as prudence and temperance are strongly linked to fiel behavior, including health, prevention, and financial decisions. The findings highlight that ignoring these dimensions, for example by using traditional measures of risk aversion only, can lead to misleading conclusions about how risk attitudes relate to behavior.