Meta-Analysis of Risk-Taking Propensities

We present a meta-analysis of prospect theory parameters, summarizing data from 166 papers reporting 812 estimates. These parameters synthesize propensities in risk-taking behavior, thus holding interest beyond prospect theory itself. The mean patterns we obtain align with the stylized facts of diminishing sensitivity towards outcomes and probabilities discussed in prospect theory. Beyond this, we uncover systematic violations of procedure invariance. A large proportion of the vast heterogenity between studies furthermore remains unexplained. These findings point to the promise of cognitive accounts of behavior in organizing unexplained variation in risk-taking, which we discuss.