Orfelio G. LeóN’s research while affiliated with Autonomous University of Madrid and other places

Subjects’ preferences for a set of multi-outcome lotteries were assessed, and then subjects were exposed to a feedback period in which they played the lotteries and received information concerning outcomes. Afterward, preferences were reassessed. Most subjects’ preferences were risk averse in the prefeedback assessment, regardless of whether they were making single decisions (short-run condition) or choices for repeated plays (long-run condition), but long-run subjects were less risk averse than short-run subjects. In the postfeedback assessment, about half of the subjects in each condition became risk seeking and the other half maintained their risk-averse preferences. There were, however, differences between short-run and long-run subjects in the postfeedback pattern of risk seeking.