# Measuring Belief and Risk Attitude

## TL;DR

This paper extends Ramsey's method to measure subjective probabilities and risk attitudes of agents modeled as risk-weighted expected utility maximizers, broadening the scope of preference-based measurement.

## Contribution

It introduces a method to empirically measure both risk attitudes and subjective probabilities for a wider class of agents beyond expected utility maximizers.

## Key findings

- Method to measure risk attitudes from preferences
- Ability to infer subjective probabilities for risk-weighted expected utility agents
- Extension of Ramsey's approach to a broader class of decision models

## Abstract

Ramsey (1926) sketches a proposal for measuring the subjective probabilities of an agent by their observable preferences, assuming that the agent is an expected utility maximizer. I show how to extend the spirit of Ramsey's method to a strictly wider class of agents: risk-weighted expected utility maximizers (Buchak 2013). In particular, I show how we can measure the risk attitudes of an agent by their observable preferences, assuming that the agent is a risk-weighted expected utility maximizer. Further, we can leverage this method to measure the subjective probabilities of a risk-weighted expected utility maximizer.