Internal Inconsistency and Risk Aversion: Implications on Smoking Decisions

Ana I. Gil-Lacruz, Marta Gil-Lacruz
2020 Estudios de Economía Aplicada  
The main contribution of this paper is an analysis of the nature of the link between internal coherence and risk aversion. Both variables play an important role in individual decisions concerning risk behaviors. We compare the levels of internal consistency and risk aversion among smokers and non-smokers. To measure the individual internal coherence and risk aversion; we use a survey that includes lottery questions. Our results confirm that smokers are consistent in their decisions and they
more » ... ve as risk averse. These results should be treated with circumspection as lottery questions are based on monetary expectations that depend on socio-economic conditions and they obviate other dimensions such as social recognition.
doi:10.25115/eea.v29i1.3944 fatcat:4mivxxzenfhpfg4lrygdrrmmky