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Is Allocation Affected by the Perception of Others' Irresponsible Behavior and by Ambiguity?

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  • Zvi Safra
  • Sinong Ma
  • Tigran Melkonyan

Abstract

The article examines how the perception of others' irresponsible behavior and ambiguity regarding probabilities affect allocation among potential beneficiaries. To elicit these views, we conducted a survey where the participants were first asked to make an allocation of a fixed sum of money between a hereditary cancer, where chance plays a central role, and a lifestyle‐related cancer, where individual lifestyle decisions are more important. Our estimation results show that a substantial share of the respondents allocate significantly more to the hereditary cancer. This may indicate that these respondents care about others' irresponsible behavior. Then, we elicited perceptions of cancer hazards in the form of imprecise probabilities and examined the interplay between allocating behavior and risk perceptions. Finally, we investigated the effects of various socioeconomic characteristics, and of awareness of highly publicized cancer cases, on respondents' allocations.

Suggested Citation

  • Zvi Safra & Sinong Ma & Tigran Melkonyan, 2019. "Is Allocation Affected by the Perception of Others' Irresponsible Behavior and by Ambiguity?," Risk Analysis, John Wiley & Sons, vol. 39(10), pages 2182-2196, October.
    • Handle: RePEc:wly:riskan:v:39:y:2019:i:10:p:2182-2196
    DOI: 10.1111/risa.13319
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    Cited by:

    1. Tigran Melkonyan & Zvi Safra & Sinong Ma, 2021. "Justice in an uncertain world: Evidence on donations to cancer research," Journal of Risk and Uncertainty, Springer, vol. 62(3), pages 281-311, June.

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