Behavioral Biases and Firm Behavior : Evidence from Kenyan Retail Shops

• Tác giả: Michael Kremer
• Ngôn ngữ: eng
• Ký hiệu phân loại: 020.96 Library and information sciences
• Thông tin xuất bản: American Economic Association, 2014
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 313394
• Chủ đề: 1. firm behavior; 2. life cycle models; 3. risk; 4. saving; 5. uncertainty

Tóm tắt

Many subjects in lab experiments exhibit small-stakes risk aversion, consistent with loss aversion. Those with greater math skills are less likely to show small-stakes risk aversion. We argue that departures from expected utility maximization may help explain why many firms in developing countries leave high expected return investments unexploited. We show that among a sample of Kenyan shopkeepers, inventories are negatively associated with small-stakes risk aversion and positively associated with math skills.