Interpersonal risk assessment and social preferences: An experimental study

Federico Fornasari, Matteo Ploner and Ivan Soraperra

Journal of Economic Psychology, 2020, vol. 77, issue C

Abstract: We investigate interpersonal risk assessment, that is how individuals use either their own or their partner’s monetary resources to offset the risk that affects them or their partner. The observed behavior is in line with the predictions of a simple piecewise linear model of social preferences. Overall, individuals opportunistically draw from others’ resources to offset risk; furthermore, they display higher levels of risk aversion when delegated to choose for others rather than when choosing for themselves. However, different social types differ in the assessment of interpersonal risk. Considering our results, we suggest that studies dealing with interpersonal risk assessment should not only focus on risk preferences, but also take into account social preferences.

Keywords: Social preferences; Risk; Decision-making for others; Laboratory experiments (search for similar items in EconPapers)
JEL-codes: C91 D03 D80 O12 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joepsy:v:77:y:2020:i:c:s0167487018305701

DOI: 10.1016/j.joep.2019.06.006

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