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Conflicting risk attitudes

Amrei M. Lahno, Marta Serra-Garcia, D’Exelle, Ben and Arjan Verschoor
Authors registered in the RePEc Author Service: Ben D'Exelle

Journal of Economic Behavior & Organization, 2015, vol. 118, issue C, 136-149

Abstract: This paper examines whether differences in individual risk attitudes are related to interpersonal conflict. In more than thirty villages of rural Uganda, we conduct a social survey to document social links between pairs of individuals within a village, and separately elicit individual risk attitudes using an incentivized task. Our findings reveal that the difference in risk attitudes between two individuals is significantly and positively related to the presence of interpersonal conflict between them. This relationship is particularly strong among kin. By contrast, the strength of risk aversion per se is not related to conflict. Further, we conduct simulations that suggest that the relationship cannot be solely explained by diverging attitudes after the severing of social ties as a result of interpersonal conflict.

Keywords: Decision making under risk; Networks; Conflicts; Development economics; Experiment; Survey (search for similar items in EconPapers)
JEL-codes: D01 D03 D81 D85 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:118:y:2015:i:c:p:136-149

DOI: 10.1016/j.jebo.2015.03.003

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