Mosuo girls became more risk-averse, while Han girls became more
risk-loving.
The results suggest that people are generally intertemporal correlation-averse, cross-prudent, and cross-temperate, and tend to exhibit either mixed risk-averse or mixed
risk-loving behavior.
Becker (1968) shows that only
risk-loving agents will be criminals under an efficient criminal justice system.
Thus the banking institutions were forced to become
risk-loving participants.
Then, if you look at the standard deviation--very large--that seems to be saying that they are big risk takers, the natural interpretation is that most of the richest people are
risk-loving or at least not very averse to risk.
That phenomenon is called loss aversion, and predicts that when investors have taken a loss, they become
risk-loving and start gambling in order to try to break even.
Using a similar dataset, Bauernschuster, Falck, Heblich, Suedekum, and Lameli (2014) measured the cultural distance between regions in Germany and found that
risk-loving people were more mobile over longer distances than were risk-averse people because they were more willing to cross cultural barriers.
That's not to say we think it is going to happen, but more that if it did happen it would have the potential to make a big mess of
risk-loving portfolios.
As a rambunctious,
risk-loving teen who enjoyed football and the rodeo, Palomarez entered the house he and his mother were about to clean, and a sobering feeling flooded his thoughts as he realized that it was the first house he ever set foot in that had A/C.
Moreover,
risk-loving landowners may even prefer price-indexed contracts that provide an opportunity for high returns.
But, while turbulent times may set the stage for transformational leaders, it does not follow that bold and
risk-loving leaders are always best suited to address the crises that define such periods.
