Pro-social preferences and risk aversion with different payment methods: Evidence from the laboratory

Jingping Li and Jin Di Zheng

International Review of Economics & Finance, 2023, vol. 87, issue C, 324-337

Abstract: With the advance of smart devices and financial technologies in place, economic transactions involving mobile payments are becoming increasingly preferred. The COVID-19 pandemic has further promoted the adoption of mobile payment since it is faster and more hygienic than cash payment. However, empirical evidence is scarce on whether people would react differently when the transaction is made through mobile or cash payment. In this paper, we examine whether the payment method has an impact on prosocial decisions and risk attitudes using standard laboratory games such as the dictator game, the ultimatum game as well as the conventional Holt and Laury (2002) risk assessment. After controlling a rich set of demographic characteristics, including age and gender, we find subjects are more generous when they use mobile payment compared to cash, but the payment effect on risk attitude is not evident.

Keywords: Social preferences; Risk aversion; Laboratory experiment; Cash payment; Mobile payment; Wechat Pay (search for similar items in EconPapers)
JEL-codes: C91 D81 D91 O33 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:87:y:2023:i:c:p:324-337

DOI: 10.1016/j.iref.2023.04.007

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