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Risk taking for oneself and others: a structural model approach

[working paper]

Vieider, Ferdinand M.; Villegas-Palacio, Clara; Martinsson, Peter; Mejía, Milagros

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Please use the following Persistent Identifier (PID) to cite this document:http://hdl.handle.net/10419/106817

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Corporate Editor Wissenschaftszentrum Berlin für Sozialforschung gGmbH
Abstract We examine situations in which a decision maker decides for another person as well as herself under conditions of payoff equality, and compare such decisions under responsibility to individual decisions. Estimating a structural model we find that responsibility leaves utility curvature unaffected, but accentuates the subjective distortion of very small and very large probabilities for both gains and losses. This results in an accentuation of prospect theory's four-fold pattern of risk preferences under responsibility. In addition, we also find that responsibility reduces loss aversion according to some common definitions of the latter. These results serve to reconcile some of the still largely contradictory findings in the literature on decisions for oneself and others under payoff equality. (author's abstract)
Keywords risk behavior; preference; social responsibility; decision
Classification Social Psychology; General Sociology, Basic Research, General Concepts and History of Sociology, Sociological Theories
Document language English
Publication Year 2015
City Berlin
Page/Pages 31 p.
Series Discussion Papers / Wissenschaftszentrum Berlin für Sozialforschung, Forschungsschwerpunkt Markt und Entscheidung, WZB-Nachwuchsgruppe Risiko und Entwicklung, SP II 2015-401
Status Published Version; reviewed
Licence Deposit Licence - No Redistribution, No Modifications