Jeffrey V. Butler|Luigi Guiso|Tullio Jappelli
The role of intuition and reasoning in driving aversion to risk and ambiguity
Einaudi Institute for Economics and Finance|Einaudi Institute for Economics and Finance|Centre for Studies in Economics and Finance|University of Naples Federico II
using large sample retail investors well experimental data find risk ambiguity aversion positively correlated provide evidence common link decision mode intuitive thinkers tolerate risk ambiguity effortful reasoners one interpretation intuitive thinking confers advantage risky ambiguous situations present supporting lab field evidence intuitive thinkers outperform others uncertain environments finally find risk ambiguity aversion vary individual characteristics wealth wealthy less risk averse ambiguity averse implications financial puzzles