Individual vs. couple behavior: an experimental investigation of risk preferences

Mohammed Abdellaoui, Olivier l’Haridon () and Corina Paraschiv ()
Authors registered in the RePEc Author Service: Olivier L'Haridon

Theory and Decision, 2013, vol. 75, issue 2, 175-191

Abstract: In this article, we elicit both individuals’ and couples’ preferences assuming prospect theory (PT) as a general theoretical framework for decision under risk. Our experimental method, based on certainty equivalents, allows to infer measurements of utility and probability weighting at the individual level and at the couple level. Our main results are twofold. First, risk attitude for couples is compatible with PT and incorporates deviations from expected utility similar to those found in individual decision making. Second, couples’ attitudes towards risk are found to be consistent with a mix of individual attitudes, women being more influent on couples’ preferences at low probability levels. Copyright Springer Science+Business Media New York 2013

Keywords: Couples; Group decisions; Risk; Uncertainty; Prospect theory; Utility; Gender (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (8)

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Working Paper: Individual vs. couple behavior: an experimental investigation of risk preferences (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:kap:theord:v:75:y:2013:i:2:p:175-191

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DOI: 10.1007/s11238-012-9322-7

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