Additional Departmental Affiliation
It has long been up for debate as to whether there is a link between financial risk aversion and income. This study’s purpose is to, using data from the game show Jeopardy!, investigate this question through analytical research. This study made use of multiple regression analyses in order to examine the relationship between income and risk aversion in Jeopardy! contestants who appeared on the show between January 2019 and October 2020. Specifically, this study looked to isolate the potential impact a contestant’s estimated annual income had on their willingness to bet on the Jeopardy! Daily Double question. It was found that, under all tested circumstances, a contestant’s estimated annual income had an insignificant positive impact on their willingness to bet a larger percentage of their respective pot. This study provides evidence that suggests there may be little-to-no significant correlation between income and financial risk aversion in individuals. Further studies could expand this research through the investigation of bettor rationality; such information could then be used to further isolate the impact of income on contestant risk aversion.
Advisor(s) or Committee Chair
Susane Leguizamon, Ph.D.
Economics | Statistics and Probability
Johnson, Miles, "Studying the Relationship Between Financial Risk Aversion and Income with the Jeopardy! Daily Double" (2021). Mahurin Honors College Capstone Experience/Thesis Projects. Paper 910.