@TechReport{iza:izadps:dp14679,
            	author={Angerer, Silvia and Dutcher, E. Glenn and Glätzle-Rützler, Daniela and Lergetporer, Philipp and Sutter, Matthias},
            	title={The Formation of Risk Preferences through Small-Scale Events},
            	year={2021},
	month={Aug},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={14679},
            	url={https://www.iza.org/publications/dp14679},
	abstract={Large, macroeconomic shocks in the past have been shown to influence economic decisions in the present. We study in an experiment with 743 subjects whether small-scale, seemingly negligible, events also affect the formation of risk preferences. In line with a reinforcement learning model, we find that subjects who won a random lottery took significantly more risk in a second lottery almost a year later. The same pattern emerges in another experiment with 136 subjects where the second lottery was played more than three years after the first lottery. So, small-scale, random, events affect the formation of risk preferences significantly.},
	keywords={preference formation;risk preferences;reinforcement learning;experiment},
            }