Mark Whitmeyer from Arizona State University will present "Outside Options and Risk Attitude."

Abstract
We uncover a close link between outside options and risk attitude:
when a decision-maker gains access to an outside option, her behaviour
becomes less risk-averse, and conversely, any observed decrease of risk-
aversion can be explained by an outside option having been made
available. We characterise the comparative statics of risk-aversion,
delineating how effective risk attitude (i.e. actual choice among risky
prospects) varies with the outside option and with the decision-maker’s
‘true’ risk attitude. We prove that outside options are special: among
transformations of a decision problem, those that amount to adding an
outside option are the only ones that always reduce risk-aversion.