EconPapers    
Economics at your fingertips  
 

Giving in the face of risk

Elena Cettolin, Arno Riedl and Giang Tran
Additional contact information
Elena Cettolin: Tilburg University, School of Economics and Management

Other publications TiSEM from Tilburg University, School of Economics and Management

Abstract: Decisions about how to share resources with others often need to be taken under uncertainty regarding its allocational consequences. Although risk preferences are likely important, existing research is silent about how social and risk preferences interact in such situations. In this paper we provide experimental evidence on this question. In a first experiment givers are not exposed to risk while beneficiaries’ final earnings may be larger or smaller than the allocation itself, depending on the realized state of the world. In a second experiment, risk affects the earnings of givers but not of beneficiaries. We find that individuals’ risk preferences are predictive for giving in both experiments. Increased risk exposure of beneficiaries tends to decrease giving whereas increased risk exposure of givers has no effect. We propose a simple non-linear generalization of a model allowing for other-regarding preferences, ex-post and ex-ante fairness, and risk aversion. We find some support for it in our data when risk is on the beneficiaries’ side but less so when risk is on the givers’ side. Our results point to the importance of the further development of models of social preferences that also incorporate risk preferences.

New Economics Papers: this item is included in nep-cbe and nep-exp
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed

Published in Journal of Risk and Uncertainty (2017), v.55, nr.2-3, p.95-118

Downloads: (external link)
https://pure.uvt.nl/ws/portalfiles/portal/24534722 ... the_face_of_risk.pdf (application/pdf)

Related works:
Journal Article: Giving in the face of risk (2017) Downloads
Working Paper: Giving in the Face of Risk (2016) Downloads
Working Paper: Giving in the Face of Risk (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tiu:tiutis:0ed4d209-f852-440c-a012-a2b89bdadeac

Access Statistics for this paper

More papers in Other publications TiSEM from Tilburg University, School of Economics and Management
Bibliographic data for series maintained by Richard Broekman ().

 
Page updated 2019-08-10
Handle: RePEc:tiu:tiutis:0ed4d209-f852-440c-a012-a2b89bdadeac