Risk preference

1. The Global Preference Survey found that the within-country variation in preferences is larger than cross-county variation. If you are the CEO of a multi-county company, what are the implications of this finding on your operation.
2. Explain what is disposition effect. Use the prospect theory to explain the rationale of the disposition effect.
3. Explain how you see loss aversion on the reference-dependent utility function.
4. Explain the pros and cons of stated preference measurement.
5. Explain why commitment devices such as Stickk would work.