Consider the following five rows of choices between lottery A and lottery B:Based on these, discuss what would be the choices of risk-averse, risk-neutral, or risk seeking individuals over the five rows.

Description

Consider the following five rows of choices between lottery A and lottery B:Based on these, discuss what would be the choices of risk-averse, risk-neutral, or risk seeking individuals over the five rows.

Row Lottery A Lottery B

1 Win €110 or €0 with 50% probability Win €15 with 100% probability

2 Win €110 or €0 with 50% probability Win €35 with 100% probability

3 Win €110 or €0 with 50% probability Win €55 with 100% probability

4 Win €110 or €0 with 50% probability Win €75 with 100% probability

5 Win €110 or €0 with 50% probability Win €95 with 100% probability

Describe the methodology employed by Dohmen et al. (2011) to measure individual risk preferences and outline the main findings of the study.