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Individual and Couple Decision Behavior under Risk:The Power of Ultimate Control

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Author Info
André de Palma () (University of Cergy-Pontoise (théma) and ENPC, Member of Institut Universitaire de France)
Nathalie Picard () (University of Cergy-Pontoise (théma) and INED)
Anthony Ziegelmeyer () (Max Planck Institute)

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Abstract

This paper reports results of an experiment designed to analyze the link between risky decisions made by couples, and risky decisions made separately by each spouse. We estimate both the individuals and the couples’ degrees of risk aversion, and we analyze how the risk preferences of the two spouses aggregate when they have to perform joint decisions under risk. We show that the man has more decision power than the woman, but the woman’s decision power increases when she has ultimate control over the joint decision.

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Paper provided by THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise in its series THEMA Working Papers with number 2007-03.

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Date of creation: 2007
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Handle: RePEc:ema:worpap:2007-03

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  1. Karni, Edi & Safra, Zvi, 1987. ""Preference Reversal' and the Observability of Preferences by Experimental Methods," Econometrica, Econometric Society, vol. 55(3), pages 675-85, May. [Downloadable!] (restricted)
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  3. Donni, Olivier, 2003. "Collective household labor supply: nonparticipation and income taxation," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 1179-1198, May. [Downloadable!] (restricted)
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  4. Thomas Baumann & Carsten Schmidt, 2004. "The Jena video laboratory for economic experiments," Discussion Papers on Strategic Interaction 2004-06, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
  5. Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December. [Downloadable!] (restricted)
  6. Ian Bateman & Alistair Munro, 2005. "An Experiment on Risky Choice Amongst Households," Economic Journal, Royal Economic Society, vol. 115(502), pages C176-C189, 03. [Downloadable!] (restricted)
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  7. Michael Lechner, 2005. "The Empirical Analysis of East German Fertility after," Labor and Demography 0505005, EconWPA. [Downloadable!]
  8. Steffen Andersen & Glenn Harrison & Morten Lau & E. Rutström, 2006. "Elicitation using multiple price list formats," Experimental Economics, Springer, vol. 9(4), pages 383-405, December. [Downloadable!] (restricted)
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