The Unattractiveness of Hedges: Implications For the Conception of Risk Preferences

Those who own a $10 HEADS voucher value a $10 TAILS voucher less than $5. This contradicts the risk aversion implied by their valuation of the HEADS voucher (which is also below $5). This logical error is difficult to expunge and it challenges essentially every existing model of risk attitudes.


Shane Frederick, Andrew Meyer, and Amanda Levis (2015) ,"The Unattractiveness of Hedges: Implications For the Conception of Risk Preferences", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl , Carolyn Yoon, and , Duluth, MN : Association for Consumer Research, Pages: 132-135.


Shane Frederick, Yale University, USA
Andrew Meyer, Yale University, USA
Amanda Levis, Yale University, USA


NA - Advances in Consumer Research Volume 43 | 2015

Share Proceeding

Featured papers

See More


Individual-level Carryover-Parameters in Reference-Price Models

Ossama Elshiewy, University of Goettingen, Germany
Daniel Guhl, Humboldt-University Berlin

Read More


A Journey with no Return into the Animal Kingdom: The Role of Tattooing in the Construction of the Collective Identity of the Vegan and Vegetarian Movement

Renata Andreoni Barboza, IBMEC-Instituto Brasileiro de Mercado de Capitais
Tania Modesto Veludo-de-Oliveira, Escola de Administração de Empresas de São Paulo da Fundação Getulio Vargas (FGV EAESP)

Read More


Saving for Experiences Versus Material Goods

Grant E. Donnelly, Harvard Business School, USA
Masha Ksendzova, Boston University, USA
Michael Norton, Harvard Business School, USA

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.