Couple and individual willingness to take risks

David Boto-García and Alessandro Bucciol

Journal of Economic Psychology, 2023, vol. 99, issue C

Abstract: This study analyses the relationship between the willingness to take risk (WTR) of a sentimental couple and its individual components. Using a survey-based measure collected in a lab experiment with 126 couples, we estimate a joint model for explaining female, male, and couple WTR. We control for socio-demographic characteristics and personality traits in the individual risk specifications and for the length of the relationship in the joint risk specification. We find that individual WTR is related to personality more than to socio-demographic variables. Couple WTR is equally determined by the individual WTR of each partner, once endogeneity arising from unobservable common factors is considered. This implies that risk-averse (risk-tolerant) individuals appear to be willing to take more (less) risk when behaving with the partner than he/she would like when behaving individually.

Keywords: Household’s risk preferences; Couples; Personality traits; Willingness to take risks; 3SLS (search for similar items in EconPapers)
JEL-codes: D13 D81 D91 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:joepsy:v:99:y:2023:i:c:s0167487023000776

DOI: 10.1016/j.joep.2023.102676

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