Representation and Social Regret in Risk-Taking

Doruk İriş ()

No 1701, Working Papers from Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy)

Abstract: Representing others brings responsibility and fear of letting others down (social regret). We incorporate these phenomena in a theoretical model and provide a psychological perspective to explain the individual-group discontinuity in risk-taking activities. A representative makes a state-wise comparison of the consequences of her decision and an unchosen advice given by a group member. Social regret-aversion renders extreme utility differences salient and allows both risky and cautious shifts.

Keywords: Social representation; Social regret-aversion; Risk-taking; Individual-group discontinuity; Risky shift; Cautious shift. (search for similar items in EconPapers)
JEL-codes: A13 D03 D81 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2017
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Working Paper: Representation and Social Regret in Risk-Taking (2017)
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