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Group and individual risk preferences: A lottery-choice experiment with self-employed and salaried workers

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Author Info

  • Masclet, David
  • Colombier, Nathalie
  • Denant-Boemont, Laurent
  • Lohéac, Youenn

Abstract

This paper focuses on decision making under risk, comparing group and individual risk preferences in a lottery-choice experiment. In the individual treatment, subjects make choices individually; in the group treatment, each subject placed in a group made lottery choice via voting. In the choice treatment, subjects choose whether to be on their own or in a group. The originality of this research lies in the fact that we introduced variability in socio-demographic characteristics by recruiting salaried and self-employed workers. Our main findings indicate that groups are more likely than individuals to choose safe lotteries. Our results also show that individuals risk attitude is correlated with both the type and the sector of employment.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 70 (2009)
Issue (Month): 3 (June)
Pages: 470-484

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Handle: RePEc:eee:jeborg:v:70:y:2009:i:3:p:470-484

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Web page: http://www.elsevier.com/locate/jebo

Related research

Keywords: Decision under risk Individual decision Group decision Self-employment;

References

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Citations

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Cited by:
  1. Maart, Syster Christin & Musshoff, Oliver & Ewald, Jorn, 2012. "Ermittlung Der Individuellen Risikoeinstellung: Vergleich Verschiedener Methoden Und Personengruppen," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137384, German Association of Agricultural Economists (GEWISOLA).
  2. He, Haoran & Martinsson, Peter & Sutter, Matthias, 2011. "Group Decision Making Under Risk: An experiment with student couples," Working Papers in Economics 519, University of Gothenburg, Department of Economics.
  3. Morone, Andrea & Morone, Piergiuseppe, 2012. "Are small groups expected utility?," MPRA Paper 38198, University Library of Munich, Germany.
  4. Tibor Besedes & Cary Deck & Sarah Quintanar & Sudipta Sarangi & Mikhael Shor, 2012. "Free-Riding and Performance in Collaborative and Non-Collaborative Groups," Working papers 2012-21, University of Connecticut, Department of Economics.
  5. Frederik Carlsson & Mitesh Kataria & Elina Lampi & M. Vittoria Levati, 2010. "Doing good with other people's money: A charitable giving experiment with students in environmental sciences and economics," Jena Economic Research Papers 2010-089, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  6. Philomena M. Bacon & Anna Conte & Peter G. Moffatt, 2012. "Risk Attitude in Couples," Jena Economic Research Papers 2012-016, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  7. Seda Ertac & Mehmet Y. Gurdal, 2012. "Personality, Group Decision-Making and Leadership," Koç University-TUSIAD Economic Research Forum Working Papers 1227, Koc University-TUSIAD Economic Research Forum.
  8. Louis Lévy-Garboua & Hela Maafi & David Masclet & Antoine Terracol, 2012. "Risk aversion and framing effects," Experimental Economics, Springer, vol. 15(1), pages 128-144, March.
  9. Tamar Kugler & Edgar E. Kausel & Martin G. Kocher, 2012. "Are Groups more Rational than Individuals? A Review of Interactive Decision Making in Groups," CESifo Working Paper Series 3701, CESifo Group Munich.
  10. Philomena M. Bacon & Anna Conte & Peter G. Moffatt, 2012. "The Analysis of Risk Attitude Amongst Family Members," Jena Economic Research Papers 2011-069, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  11. Brown, Sarah & Dietrich, Michael & Ortiz-Nuñez, Aurora & Taylor, Karl, 2011. "Self-employment and attitudes towards risk: Timing and unobserved heterogeneity," Journal of Economic Psychology, Elsevier, vol. 32(3), pages 425-433, June.
  12. Dawson, Christopher & Henley, Andrew, 2012. "Gender, Risk and Venture Creation Intentions," IZA Discussion Papers 6947, Institute for the Study of Labor (IZA).

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