However, there are some certain individuals who loves taking risks and they’re described as risk seekers and their utility function tends to be convex. They are able to gain utility from approving an option even if the expected value is lower than the certain payment Mongin. Byrnes, Miller and Schafer, conducted one of the largest meta-analysis by comparing 150 distinct studies and classified 16 different types of risk taking. Out of the 16 types, 14...
However, there are some certain individuals who loves taking risks and they’re described as risk seekers and their utility function tends to be convex. They are able to gain utility from approving an option even if the expected value is lower than the certain payment Mongin.
Byrnes, Miller and Schafer, conducted one of the largest meta-analysis by comparing 150 distinct studies and classified 16 different types of risk taking. Out of the 16 types, 14 risk taking were showing discrepancies between male and female, with females being more risk averse. One of the discrepancies where gender gap which varied with age.
However, there has been more recent study on the meta-analysis by Charness and Gneezy, their experiment was based on the same investment principle, but was conducted by 7 different research from various country but has the same research subject. The results, have strengthen their conclusion that indeed females are more risk averse than males.
