The Origins of Risk Sharing: An Experimental Approach
AbstractControversy exists about the act of giving as altruistic instead of self-interested behavior. Each side of this argument interprets similar results from similar experiments in different ways. One side argues the results show that the appearance of altruistic behavior can be explained by self-interested motives. The other side argues these results are evidence of group selection,where a group member takes an action that is harmful to itself but benefi cial to the group. We consider this question using a novel approach. We create a rich experimental environment in which subjects have the ability to cooperate to improve the group's outcome by sharing their wealth in non-compulsory, non-enforceable risk-sharing arrangements. We find that average subject behavior appears to be motivated by self-interest more than group survival.
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Bibliographic InfoPaper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 201302.
Length: 20 pages
Date of creation: 18 Jan 2013
Date of revision:
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More information through EDIRC
risk sharing; experiment; resource management;
Find related papers by JEL classification:
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-20 (All new papers)
- NEP-CBE-2013-07-20 (Cognitive & Behavioural Economics)
- NEP-CDM-2013-07-20 (Collective Decision-Making)
- NEP-EVO-2013-07-20 (Evolutionary Economics)
- NEP-EXP-2013-07-20 (Experimental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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University of Chicago - George G. Stigler Center for Study of Economy and State
7, Chicago - Center for Study of Economy and State.
- Posner, Richard A, 1980. "A Theory of Primitive Society, with Special Reference to Law," Journal of Law and Economics, University of Chicago Press, vol. 23(1), pages 1-53, April.
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