Decisions under unpredictable losses: An examination of the restated diversification principle
2007 (English)In: Judgment and decision making, ISSN 1930-2975, Vol. 2, no 5, 312-316 p.Article in journal (Refereed) Published
An experimental test of the descriptive adequacy of the restated diversification principle is presented. The principle postulates that risk-averse utility maximizers will pool risks for their mutual benefit, even if information is missing about the probabilities of losses. It is enough for people to assume that they face equal risks when they pool risks. The results of the experiment support the principle.
Place, publisher, year, edition, pages
2007. Vol. 2, no 5, 312-316 p.
Group behavior, loss sharing, unpredictable losses, experiment, risk pooling.
IdentifiersURN: urn:nbn:se:liu:diva-84246OAI: oai:DiVA.org:liu-84246DiVA: diva2:558335