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Emotional reactions to losing explain gender differences in entering a risky lottery

Kimmo Eriksson and Brent Simpson

Judgment and Decision Making, 2010, vol. 5, issue 3, 159-163

Abstract: A gender difference in risk preferences, with women being more averse to risky choices, is a robust experimental finding. Speculating on the sources of this difference, Croson and Gneezy recently pointed to the tendency for women to experience emotions more strongly and suggested that feeling more strongly about negative outcomes would lead to greater risk-aversion. Here we test this hypothesis in an international survey with 424 respondents from India and 416 from US where we ask questions about a hypothetical lottery. In both countries we find that emotions about outcomes are stronger among women, and that this effect partially mediates gender difference in willingness to enter the lottery.

Keywords: lottery; risk preferences; gender differences; country differences. (search for similar items in EconPapers)
Date: 2010
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