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The social costs of responsibility

Author

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  • Steven J. Humphrey

    (Fachbereich Wirtschaftwissenschaften, Universitaet Osnabrueck)

  • Elke Renner

    (School of Economics, University of Nottingham)

Abstract

We use an experimental lottery choice task and public goods game to examine if responsibility for the financial welfare of others affects decisionmaking behaviour in two different types of decision environments. We find no evidence that responsibility affects individual risk preferences. Responsibility does, however, crowd-out cooperation in a public goods game.

Suggested Citation

  • Steven J. Humphrey & Elke Renner, 2011. "The social costs of responsibility," Discussion Papers 2011-02, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    • Handle: RePEc:not:notcdx:2011-02
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    File URL: https://www.nottingham.ac.uk/cedex/documents/papers/2011-02.pdf
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    References listed on IDEAS

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    Cited by:

    1. Eriksen, Kristoffer W. & Kvaløy, Ola & Luzuriaga, Miguel, 2020. "Risk-taking on behalf of others," Journal of Behavioral and Experimental Finance, Elsevier, vol. 26(C).
    2. Timo Heinrich & Thomas Mayrhofer, 2018. "Higher-order risk preferences in social settings," Experimental Economics, Springer;Economic Science Association, vol. 21(2), pages 434-456, June.
    3. Karen Evelyn Hauge & Ole Rogeberg, 2015. "Representing Others in a Public Good Game," Games, MDPI, vol. 6(3), pages 1-13, September.
    4. Jones, Luke & Cseh, Attila, 2021. "Earning responsibility increases risk taking among representative decision makers," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 317-329.
    5. Bixter, Michael T. & Luhmann, Christian C., 2014. "Shared losses reduce sensitivity to risk: A laboratory study of moral hazard," Journal of Economic Psychology, Elsevier, vol. 42(C), pages 63-73.
    6. repec:wly:soecon:v:82:2:y:2015:p:501-534 is not listed on IDEAS
    7. François Desmoulins-Lebeault & Luc Meunier, 2018. "Moment Risks: Investment for Self and for a Firm," Decision Analysis, INFORMS, vol. 15(4), pages 242-266, December.
    8. Vecchi, Martina, 2022. "Groups and socially responsible production: An experiment with farmers," Journal of Economic Behavior & Organization, Elsevier, vol. 196(C), pages 372-392.
    9. de Oliveira, Angela C.M. & Smith, Alexander & Spraggon, John, 2017. "Reward the lucky? An experimental investigation of the impact of agency and luck on bonuses," Journal of Economic Psychology, Elsevier, vol. 62(C), pages 87-97.
    10. Füllbrunn, Sascha & Luhan, Wolfgang J., 2015. "Am I my Peer's Keeper? Social Responsibility in Financial Decision Making," Ruhr Economic Papers 551, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    11. Michalis Drouvelis & Julian C. Jamison, 2015. "Selecting public goods institutions: Who likes to punish and reward?," Southern Economic Journal, Southern Economic Association, vol. 82(2), pages 501-534, October.
    12. Dannenberg, Astrid & Martinsson, Peter, 2021. "Responsibility and prosocial behavior - Experimental evidence on charitable donations by individuals and group representatives," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 90(C).
    13. Hauge, Karen Evelyn & Røgeberg, Ole, 2014. "Contributing to Public Goods as Individuals versus Group Representatives: Evidence of Gender Differences," Memorandum 16/2014, Oslo University, Department of Economics.
    14. repec:zbw:rwirep:0551 is not listed on IDEAS
    15. Michalis Drouvelis & Julian C. Jamison, 2015. "Selecting public goods institutions: Who likes to punish and reward?," Southern Economic Journal, John Wiley & Sons, vol. 82(2), pages 501-534, October.
    16. Cason, Timothy N. & Gangadharan, Lata & Grossman, Philip J., 2022. "Gender, beliefs, and coordination with externalities," Journal of Public Economics, Elsevier, vol. 214(C).
    17. Sascha Füllbrunn & Wolfgang J. Luhan, 2015. "Am I my Peer‘s Keeper? Social Responsibility in Financial Decision Making," Ruhr Economic Papers 0551, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    18. Marco Faillo & Federico Fornasari & Luigi Mittone, 2016. "Tell Me How to Rule: Leadership, Delegation, and Voice in Cooperation," CEEL Working Papers 1604, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    19. Polman, Evan & Wu, Kaiyang, 2020. "Decision making for others involving risk: A review and meta-analysis," Journal of Economic Psychology, Elsevier, vol. 77(C).
    20. Montinari, Natalia & Rancan, Michela, 2020. "A friend is a treasure: On the interplay of social distance and monetary incentives when risk is taken on behalf of others," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 86(C).
    21. Angela C. M. Oliveira, 2021. "When risky decisions generate externalities," Journal of Risk and Uncertainty, Springer, vol. 63(1), pages 59-79, August.
    22. Waichman, Israel & Blanckenburg, Korbinian von, 2020. "Is there no “I” in “Team”? Interindividual-intergroup discontinuity effect in a Cournot competition experiment," Journal of Economic Psychology, Elsevier, vol. 77(C).
    23. Thomas Clark Durant & Michael Weintraub & Daniel Houser & Shuwen Li, 2018. "Trust in the executive," Journal of Peace Research, Peace Research Institute Oslo, vol. 55(5), pages 609-624, September.

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    More about this item

    Keywords

    responsibility; risk attitudes; social preferences; public goods game;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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