An Experiment On Risky Choice Amongst Households
Abstract
A host of experiments have examined theories of risky choice using "individuals". However, many important economic decisions are taken within multi-adult "households". This paper reports on the first economic experiment designed to test theories of household choice. We use established couples and face them individually and jointly with decisions involving monetary payoffs. We find that joint choices typically are more risk averse than those made by individuals. Meanwhile, choices made by couples exhibit the same kinds of departures from expected utility theory (e.g. the common ratio and common consequence effects) as are regularly recorded with individuals. Copyright 2005 Royal Economic Society.(This abstract was borrowed from another version of this item.)
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Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2004 with number 77.
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Date of creation: 17 Sep 2004
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Handle: RePEc:ecj:ac2004:77
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Web page: http://www.res.org.uk/society/annualconf.asp
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Related research
Keywords:Other versions of this item:
- Ian Bateman & Alistair Munro, 2005. "An Experiment on Risky Choice Amongst Households," Economic Journal, Royal Economic Society, vol. 115(502), pages C176-C189, 03.
- NEP-ALL-2004-09-30 (All new papers)
- NEP-DCM-2004-09-30 (Discrete Choice Models)
- NEP-EXP-2004-09-30 (Experimental Economics)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Alistair Munro, 2009. "Introduction to the Special Issue: Things We Do and Don’t Understand About the Household and the Environment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(1), pages 1-10, May.
- André Palma & Nathalie Picard & Anthony Ziegelmeyer, 2011.
"Individual and couple decision behavior under risk: evidence on the dynamics of power balance,"
Theory and Decision,
Springer, vol. 70(1), pages 45-64, January.
- André De Palma & Nathalie Picard & Anthony Ziegelmeyer, 2009. "Individual and couple decision behavior under risk: Evidence on the dynamics of power balance," Working Papers hal-00418899, HAL.
- He, Haoran & Martinsson, Peter & Sutter, Matthias, 2011.
"Group Decision Making Under Risk: An experiment with student couples,"
Working Papers in Economics
519, Göteborg University, Department of Economics.
- Haoran He & Peter Martinsson & Matthias Sutter, 2011. "Group Decision Making Under Risk: An Experiment with Student Couples," Working Papers 2011-27, Faculty of Economics and Statistics, University of Innsbruck.
- André de Palma & Nathalie Picard & Anthony Ziegelmeyer, 2007.
"Individual and Couple Decision Behavior under Risk:The Power of Ultimate Control,"
THEMA Working Papers
2007-03, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- André de Palma & Nathalie Picard & Anthony Ziegelmeyer, 2008. "Individual and Couple Decision Behavior under Risk: The Power of Ultimate Control," Papers on Strategic Interaction 2006-22, Max Planck Institute of Economics, Strategic Interaction Group.
- Cochard François, Couprie Helene, Hopfensitz Astrid, 2009.
"Do Spouses Cooperate? And If Not: Why?,"
THEMA Working Papers
2009-10, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Cochard, François & Couprie, Hélène & Hopfensitz, Astrid, 2009. "Do Spouses Cooperate? And If Not: Why?," TSE Working Papers 09-134, Toulouse School of Economics (TSE).
- Nesha Beharry-Borg & David Hensher & Riccardo Scarpa, 2009. "An Analytical Framework for Joint vs Separate Decisions by Couples in Choice Experiments: The Case of Coastal Water Quality in Tobago," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(1), pages 95-117, May.
- Munro, Alistair & McNally, Tara & Popov, Danail, 2008. "Taking it in turn: an experimental test of theories of the household," MPRA Paper 8976, University Library of Munich, Germany.
- Alistair Munro & Ian J. Bateman, 2006.
"Household versus individual valuation: what’s the difference?,"
Royal Holloway, University of London: Discussion Papers in Economics
06/02, Department of Economics, Royal Holloway University of London, revised Feb 2006.
- Ian Bateman & Alistair Munro, 2009. "Household Versus Individual Valuation: What’s the Difference?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(1), pages 119-135, May.
- David Masclet & Youenn Loheac & Laurent Denant-Boemont & Nathalie Colombier, 2004.
"Group and individual risk preferences : a lottery-choice experiment,"
Cahiers de la Maison des Sciences Economiques
bla06063, Université Panthéon-Sorbonne (Paris 1), revised Sep 2006.
- David Masclet & Youenn Loheac & Laurent Denant-Boèmont & Nathalie Colombier, 2006. "Group and individual risk preferences : a lottery-choice experiment," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00118973, HAL.
- Carlsson, Fredrik & Martinsson, Peter & Qin, Ping & Sutter, Matthias, 2009.
"Household decision making and the influence of spouses’ income, education, and communist party membership: A field experiment in rural China,"
Working Papers in Economics
356, Göteborg University, Department of Economics.
- Carlsson, Fredrik & Martinsson, Peter & Qin, Ping & Sutter, Matthias, 2009. "Household Decision Making and the Influence of Spouses' Income, Education, and Communist Party Membership: A Field Experiment in Rural China," IZA Discussion Papers 4139, Institute for the Study of Labor (IZA).
- Fredrik Carlsson & Peter Martinsson & Ping Qin & Matthias Sutter, 2009. "Household decision making and the influence of spouses? income, education, and communist party membership: A field experiment in rural China," Working Papers 2009-09, Faculty of Economics and Statistics, University of Innsbruck.
- Munro, Alistair & Bateman, Ian J. & McNally, Tara, 2008. "The family under the microscope: an experiment testing economic models of household choice," MPRA Paper 8974, University Library of Munich, Germany.
- Henrik Lindhjem & Ståle Navrud, 2009. "Asking for Individual or Household Willingness to Pay for Environmental Goods?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(1), pages 11-29, May.
- Carlsson, Fredrik & He, Haoran & Martinsson, Peter & Qin, Ping & Sutter, Matthias, 2010.
"Household Decision Making in Rural China: Using Experiments to Estimate the Influences of Spouses,"
IZA Discussion Papers
5127, Institute for the Study of Labor (IZA).
- Fredrik Carlsson & Haoran He & Peter Martinsson & Ping Qin & Matthias Sutter, 2010. "Household Decision Making in Rural China: Using Experiments to Estimate the Influences of Spouses," Working Papers 2010-20, Faculty of Economics and Statistics, University of Innsbruck.
- Carlsson, Fredrik & He, Haoran & Martinsson, Peter & Qin, Ping & Sutter, Matthias, 2010. "Household Decision Making in Rural China: Using Experiments to Estimate the Influences of Spouses," Working Papers in Economics 465, Göteborg University, Department of Economics.
- 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.
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