Do actions speak louder than words? Comparing the effect of risk aversion on objective and self-reported mitigation measures

Patricia A. Champ; James R. Meldrum; Hannah Brenkert-Smith; Travis Warziniack; Christopher M. Barth; Lilia C. Falk; Jamie B. Gomez

doi:10.1016/j.jebo.2019.11.019

Treesearch

Do actions speak louder than words? Comparing the effect of risk aversion on objective and self-reported mitigation measures

Formally Refereed

Authors:

Patricia A. Champ, James R. Meldrum, Hannah Brenkert-Smith, Travis Warziniack, Christopher M. Barth, Lilia C. Falk, Jamie B. Gomez

Year:

2019

Type:

Scientific Journal

Station:

Rocky Mountain Research Station

DOI:

https://doi.org/10.1016/j.jebo.2019.11.019

Source:

Journal of Economic Behavior and Organization. 169: 301-313.

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Abstract

In this article, we empirically examine whether the relationship between risk aversion and self-reported risk mitigating behavior is similar to the relationship between risk aversion and an objective measure of risk mitigating behavior. Despite higher levels of risk mitigation in the self-reported measure relative to the objective measure, we find risk aversion is similarly correlated with both measures of wildfire risk mitigation. These results provide some confidence in the use of self-reported behaviors in examinations of risk preferences and risky behaviors, even if the self-reports understate objective behavioral measures.

Keywords

risk preferences, risk aversion, risk mitigation, risky behavior, wildfire, self-reported behavior, objective behavior measure

Citation

Champ, Patricia A.; Meldrum, James R.; Brenkert-Smith, Hannah; Warziniack, Travis W.; Barth, Christopher M.; Falk, Lilia C.; Gomez, Jamie B. 2019. Do actions speak louder than words? Comparing the effect of risk aversion on objective and self-reported mitigation measures. Journal of Economic Behavior and Organization. 169: 301-313.