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An experimental test for risk aversion

Affiliation:	1. Research Assistant, Dept. of Civil Engineering, Middle East Technical University, Ankara 06800, Turkey;2. Assistant Professor, Dept. of Architecture, Middle East Technical University, Ankara 06800, Turkey;3. Associate Professor, Dept. of Civil Engineering, Middle East Technical University, Ankara 06800, Turkey;1. Istituto Nazionale di Geofisica e Vulcanologia, Sezione di Bologna, Bologna, Italy;2. Università di Bologna, Dipartimento di Fisica e Astronomia, Bologna, Italy;3. Swiss Seismological Service, ETH Zurich, Zurich, Switzerland

Abstract:	This paper evaluates an experimental method to measure attitudes to risk in individual subjects. The method is applied to study the degree of risk aversion of 46 subjects. The results lead us to reject a working hypothesis of risk neutrality for such experimental subjects.

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