Heinrich, TimoTimoHeinrichShachat, Jason M.Jason M.Shachat2021-02-162021-02-162020-12-01Journal of Risk and Uncertainty 3 (61): 263-287 (2020-12-01)http://hdl.handle.net/11420/8772This study experimentally evaluates the risk preferences of children and adolescents living in an urban Chinese environment. We use a simple binary choice task that tests risk aversion, as well as prudence. This is the first test for prudence in children and adolescents. Our results reveal that subjects from grades 5 to 11 (10 to 17 years) make mostly risk-averse and prudent choices. The choices of 3rd graders (8 to 9 years) do not differ statistically from risk neutral benchmarks, but at the same time they make mostly prudent choices. We also find evidence for a transmission of risk preferences. There is positive correlation between all children’s and their parents’ tendency to make risk-averse choices. There is also positive correlation between girls’ and their parents’ tendency to make prudent choices.en0895-564620203263287Springer Science + Business Media B.Vhttps://creativecommons.org/licenses/by/4.0/Age effectsChildrenExperimental economicsPrudenceRisk aversionTransmission of preferencesInformatikWirtschaftJournal Article10.15480/882.328710.1007/s11166-020-09340-710.15480/882.3287Journal Article