Social and Behavioral Sciences Commons^™

Behavioral Response To Endogenous Risk In The Laboratory, Shabori Sen

Electronic Theses and Dissertations

Risk is endogenous when an individual is able to undertake mitigation or self protection actions that reduce the risk that he faces. Most risky environments studied in economics involve endogenous risk. This dissertation studies the conceptual and behavioral implications of introducing endogeneity in the controlled environment of the laboratory. The dissertation consists of three different experiments designed to examine how endogeneity affects risk attitudes and risk perceptions in simple experimental set ups. All three experiments employ a virtual reality scenario where the subject is able to form his own beliefs, based on naturalistic cues provided by the virtual reality experience. …