Michael Kremer|Jean Lee|Jonathan Robinson|Olga Rostapshova
Behavioral Biases and Firm Behavior: Evidence from Kenyan Retail Shops
Harvard University|World Bank|University of California, Santa Cruz|Dana-Farber/Harvard Cancer Center
many subjects lab experiments exhibit smallstakes risk aversion consistent loss aversion greater math skills less likely show smallstakes risk aversion argue departures expected utility maximization may help explain many firms developing countries leave high expected return investments unexploited show among sample kenyan shopkeepers inventories negatively associated smallstakes risk aversion positively associated math skills