# Ambiguity Aversion and Household Portfolio Choice

Single Wave Study

#### General Information

In January 2010, the LISS panel completed a questionnaire about the choices one makes when confronted with a known and unknown probability distribution. The questionnaire was presented to 2,491 panel members, and it was fully completed by 1,933 respondents (response percentage 77.6%).

The respondents were presented with three games, preceded by an example question. Each game consisted of six rounds at most. The chance of winning with the known probability distribution varied from the second round on, depending on the respondent's choice in the previous round (‘known’ or ‘unknown’). A game ended as soon as the respondent indicated to have no preference, or if the chance of winning fell below a certain value (less than 2.5% difference with a so-called ‘floor’ or ‘ceiling’ value[1]).

After three games, two control questions were asked. These questions consisted of a single round each. The chance of winning with these questions depended on the chance of winning in the last round of game 1.

Finally, two questions were posed about risk aversion. These questions also involved a game consisting of six rounds at most. Respondents either chose the option that guaranteed winning a certain sum, or the option that offered a 50% chance of a higher amount and a 50% chance of 0 euro. The amount for the guarantee option varied from the second round on, depending on the choice made in the previous round. A game ended as soon as the respondent indicated to have no preference, or if the amount with the guarantee option fell below a certain value (less than 100 euros difference with the so-called ‘floor’ or ‘ceiling’ value).

Respondents were assigned one of two conditions beforehand. Respondents had 50% chance of being assigned condition 1, and 50% chance of condition 2. Within a household, panel members were assigned the same condition. Respondents under condition 1 knew that this involved a fictitious game and that no extra reward would be paid out. Respondents under condition 2 were informed that a real game would be played at the end, in which they could earn an extra reward of 15 euros.

[1] Read more about these terms in the descriptions of the various questions in the codebook.

#### Datasets and documentation

#### View Documentation

#### Data Files

#### Variables

Variable name | Variable Label | Variable Type |
---|---|---|

nomem_encr | Number of household member encrypted | preloaded |

bm10a_m | Year and month of field work period | constructed |

bm10a001 | Group | preloaded |

bm10a002 | Position within the household | preloaded |

bm10a003 | The household head lives together with a partner (wedded or unwedded) | preloaded |

bm10a004 | Takes care of the financial matters | preloaded |

bm10a005 | color of choice - example question | constructed |

bm10a006 | risky probability gain - example question, first iteration | constructed |

bm10a007 | choice selected - example question, first iteration | directly measured |

bm10a008 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a009 | risky probability gain - example question, second iteration | constructed |

bm10a010 | choice selected - example question, second iteration | directly measured |

bm10a011 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a012 | risky probability gain - example question, third iteration | constructed |

bm10a013 | choice selected - example question, third iteration | directly measured |

bm10a014 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a015 | risky probability gain - example question, fourth iteration | constructed |

bm10a016 | choice selected - example question, fourth iteration | directly measured |

bm10a017 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a018 | risky probability gain - example question, fifth iteration | constructed |

bm10a019 | choice selected - example question, fifth iteration | directly measured |

bm10a020 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a021 | risky probability gain - example question, sixth iteration | constructed |

bm10a022 | choice selected - example question, sixth iteration | directly measured |

bm10a023 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a024 | risky probability gain - example question, final iteration | constructed |

bm10a025 | choice selected - example question, final iteration | constructed |

bm10a026 | total number of iterations - example question | constructed |

bm10a027 | color of choice - question 1 | constructed |

bm10a028 | risky probability gain - question 1, first iteration | constructed |

bm10a029 | choice selected - question 1, first iteration | directly measured |

bm10a030 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a031 | risky probability gain - question 1, second iteration | constructed |

bm10a032 | choice selected - question 1, second iteration | directly measured |

bm10a033 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a034 | risky probability gain - question 1, third iteration | constructed |

bm10a035 | choice selected - question 1, third iteration | directly measured |

bm10a036 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a037 | risky probability gain - question 1, fourth iteration | constructed |

bm10a038 | choice selected - question 1, fourth iteration | directly measured |

bm10a039 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a040 | risky probability gain - question 1, fifth iteration | constructed |

bm10a041 | choice selected - question 1, fifth iteration | directly measured |

bm10a042 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a043 | risky probability gain - question 1, final iteration | constructed |

bm10a044 | choice selected - question 1, first iteration | constructed |

bm10a045 | total number of iterations - question 1 | constructed |

bm10a046 | color of choice question 2 | constructed |

bm10a047 | risky probability gain - question 2, first iteration | constructed |

bm10a048 | choice selected - question 2, first iteration | directly measured |

bm10a049 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a050 | risky probability gain - question 2, second iteration | constructed |

bm10a051 | choice selected - question 2, second iteration | directly measured |

bm10a052 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a053 | risky probability gain - question 2, third iteration | constructed |

bm10a054 | choice selected - question 2, third iteration | directly measured |

bm10a055 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a056 | risky probability gain - question 2, fourth iteration | constructed |

bm10a057 | choice selected - question 2, fourth iteration | directly measured |

bm10a058 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a059 | risky probability gain - question 2, fifth iteration | constructed |

bm10a060 | choice selected - question 2, fifth iteration | directly measured |

bm10a061 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a062 | risky probability gain - question 2, sixth iteration | constructed |

bm10a063 | choice selected - question 2, sixth iteration | directly measured |

bm10a064 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a065 | risky probability gain - question 2, final iteration | constructed |

bm10a066 | choice selected - question 2, final iteration | constructed |

bm10a067 | total number of iterations - question 2 | constructed |

bm10a068 | color of choice question 3 | constructed |

bm10a069 | risky probability gain - question 3, first iteration | constructed |

bm10a070 | choice selected - question 3, first iteration | directly measured |

bm10a071 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a072 | risky probability gain - question 3, second iteration | constructed |

bm10a073 | choice selected - question 3, second iteration | directly measured |

bm10a074 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a075 | risky probability gain - question 3, third iteration | constructed |

bm10a076 | choice selected - question 3, third iteration | directly measured |

bm10a077 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a078 | risky probability gain - question 3, fourth iteration | constructed |

bm10a079 | choice selected - question 3, fourth iteration | directly measured |

bm10a080 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a081 | risky probability gain - question 3, fifth iteration | constructed |

bm10a082 | choice selected - question 3, fifth iteration | directly measured |

bm10a083 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a084 | risky probability gain - question 3, sixth iteration | constructed |

bm10a085 | choice selected - question 3, sixth iteration | directly measured |

bm10a086 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a087 | risky probability gain - question 3, final iteration | constructed |

bm10a088 | choice selected - question 3, final iteration | constructed |

bm10a089 | total number of iterations - question 3 | constructed |

bm10a090 | color of choice question 4 | constructed |

bm10a091 | risky probability gain - question 4, first iteration | derived |

bm10a092 | choice selected - question 4, first iteration | directly measured |

bm10a093 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a094 | color of choice question 5 | constructed |

bm10a095 | risky probability gain - question 5, first iteration | derived |

bm10a096 | choice selected - question 5, first iteration | directly measured |

bm10a097 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a098 | risky probability gain - question 6, first iteration | constructed |

bm10a099 | choice selected - question 6, first iteration | directly measured |

bm10a100 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a101 | risky probability gain - question 6, second iteration | constructed |

bm10a102 | choice selected - question 6, second iteration | directly measured |

bm10a103 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a104 | risky probability gain - question 6, third iteration | constructed |

bm10a105 | choice selected - question 6, third iteration | directly measured |

bm10a106 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a107 | risky probability gain - question 6, final iteration | constructed |

bm10a108 | choice selected - question 6, final iteration | constructed |

bm10a109 | total number of iterations - question 6 | constructed |

bm10a110 | risky probability gain - question 7, first iteration | constructed |

bm10a111 | choice selected - question 7, first iteration | directly measured |

bm10a112 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a113 | risky probability gain - question 7, second iteration | constructed |

bm10a114 | choice selected - question 7, second iteration | directly measured |

bm10a115 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a116 | risky probability gain - question 7, third iteration | constructed |

bm10a117 | choice selected - question 7, third iteration | directly measured |

bm10a118 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a119 | risky probability gain - question 7, fourth iteration | constructed |

bm10a120 | choice selected - question 7, fourth iteration | directly measured |

bm10a121 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a122 | risky probability gain - question 7, fifth iteration | constructed |

bm10a123 | choice selected - question 7, fifth iteration | directly measured |

bm10a124 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a125 | risky probability gain - question 7, sixth iteration | constructed |

bm10a126 | choice selected - question 7, sixth iteration | directly measured |

bm10a127 | number of seconds between click on button at previous item and click on button at this item | constructed |

bm10a128 | risky probability gain - question 7, final iteration | constructed |

bm10a129 | choice selected - question 7, final iteration | constructed |

bm10a130 | total number of iterations - question 7 | constructed |

bm10a131 | Do you currently have a partner? | directly measured |

bm10a132 | Which of the members of your household is most involved in the financial administration of your household? | directly measured |

bm10a133 | On 31 December 2009, did you possess investments in share funds or stocks? | directly measured |

bm10a134 | What was the total value of your investments in share funds or stocks on 31 December 2009? | directly measured |

bm10a135 | After 5 years, how much would you have in this account in total? | directly measured |

bm10a136 | Considering a long time period (for example 10 or 20 years) which asset normally gives you the highest return? | directly measured |

bm10a137 | When an investor spreads his money among different assets, does the risk increase, decrease or remain the same? | directly measured |

bm10a138 | Was it difficult to answer the questions? | directly measured |

bm10a139 | Were the questions sufficiently clear? | directly measured |

bm10a140 | Did the questionnaire get you thinking about things? | directly measured |

bm10a141 | Was it an interesting subject? | directly measured |

bm10a142 | Did you enjoy answering the questions? | directly measured |

bm10a143 | Starting date questionnaire | constructed |

bm10a144 | Starting time questionnaire | constructed |

bm10a145 | End date questionnaire | constructed |

bm10a146 | End time questionnaire | constructed |

bm10a147 | duration in seconds | derived |

#### Questions

#### Questionnaire: Ambiguity Aversion and Household Portfolio Choice

This questionnaire was originally conducted in Dutch.

Browse Ambiguity Aversion and Household Portfolio Choice#### Response Information

##### Response Overview

Selected number of household members: 2,491(100%)Non-response: 556 (22.3%)

Response: 1,935 (77.7%)

Complete: 1,933 (77.6%)

Incomplete: 2 (0.1%)

##### Collection Events

#### Publications

*Robustness: (extended) multiplier preferences for the American and the Dutch population Erasmus School of Economics, Erasmus University Rotterdam; Baillon, Aurélien, et al.*

*Ambiguity Attitudes in a Large Representative Sample Management Science, 62(5), pp. 1363–1380; Dimmock, S.G., et al.*

*Measuring ambiguity attitude: (Extended) multiplier preferences for the American and the Dutch population Journal of Risk and Uncertainty, 54(3), 269-281; Baillon, A., et al.*

*Personalità, inerzia e possesso attività finanziarie University of Rome Tor Vergata; Ceccarelli, G.*