My background is in labor economics/applied micro but I am currently working with data collected from a field experiment. My experimental/micro skills are rusty to say the least.
In my data, I observe individuals choosing one of the choices $A, B, C, D$. The value of the choice is realized after the choice. I know that
$$E(A) <= E(B) <= E(C) <= E(D)$$ $$VAR(A) <= VAR(B) <= VAR(C) <= VAR(D)$$
If I assume that $A, B, C, D$ are continuous, independent and normally distributed and individuals are aware of expected payoffs $E(i)$ and variances $VAR(i)$.
- Is there a way to estimate a expected risk aversion parameter (e.g. CRRA) for a group of people?
- Would it make sense to compare these risk estimates from two groups of people, say men and women or high educated and low educated?
I would appreciate if you guys could come up with some relevant literature.