Interpersonal Risk Assessment and Social Preferences An Experimental Study

Publication date: Available online 15 June 2019Source: Journal of Economic PsychologyAuthor(s): Federico Fornasari, Matteo Ploner, Ivan SoraperraAbstractWe investigate interpersonal risk assessment, that is how individuals use either their own or their partner’s monetary resources to offset the risk that affects them or their partner. The observed behavior is in line with the predictions of a simple piecewise linear model of social preferences. Overall, individuals opportunistically draw from others’ resources to offset risk; furthermore, they display higher levels of risk aversion when delegated to choose for others rather than when choosing for themselves. However, different social types differ in the assessment of interpersonal risk. Considering our results, we suggest that studies dealing with interpersonal risk assessment should not only focus on risk preferences, but also take into account social preferences.

Source: Journal of Economic Psychology - June 15, 2019 Category: Psychiatry & Psychology Source Type: research