Dictating the risk – experimental evidence on giving in risky environments
AbstractWe study if and how social preferences extend to risky environments. By providing experimental evidence on different versions of “dictator games” with risky outcomes, we establish that social preferences of players who give in standard dictator games cannot be described solely by concerns over ex post distributions. Instead, dictators take the distribution of ex ante chances to win into account: the more money decision-makers transfer in the standard dictator game, the more likely they are to equalise to payoff chances under risk. Risk to the recipient does, however, generally decrease the transferred amount. Ultimately, preferences that are exclusively based on ex post or on ex ante comparisons cannot generate the observed behavioural patterns and a utility function with a combination of these concerns may best describe behaviour.
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Bibliographic InfoPaper provided by European Bank for Reconstruction and Development, Office of the Chief Economist in its series Working Papers with number 139.
Length: 37 pages
Date of creation: Dec 2011
Date of revision:
Publication status: Published in Working papers 139, European Bank for Reconstruction and Development
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More information through EDIRC
dictator game; risk; social preferences;
Other versions of this item:
- J. Michelle Brock & Andreas Lange & Erkut Y. Ozbay, 2013. "Dictating the Risk: Experimental Evidence on Giving in Risky Environments," American Economic Review, American Economic Association, vol. 103(1), pages 415-37, February.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
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