Individual and couple decision behavior under risk: evidence on the dynamics of power balance
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 spouses and the couples' degrees of risk aversion, we assess how the risk preferences of the two spouses aggregate when they make risky decisions and we shed light on the dynamics of the decision process that takes place when couples make risky decisions. We find that, far from being fixed, the balance of power within the household is malleable. In most couples, men have, initially, more decision-making power than women but women who ultimately implement the joint decisions gain more and more power over the course of decision making.
(This abstract was borrowed from another version of this item.)
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.:
- Alistair Munro & Ian Bateman, 2004.
"An Experiment On Risky Choice Amongst Households,"
Royal Economic Society Annual Conference 2004
77, Royal Economic Society.
- Vermeulen, Frederic, 2002.
" Collective Household Models: Principles and Main Results,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 16(4), pages 533-64, September.
- Frederic VERMEULEN, 2000. "Collective Household Models: Principles and Main Results," Center for Economic Studies - Discussion papers ces0028, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
- Frederic Vermeulen, 2000. "Collective household models: principles and main results," Public Economics Working Paper Series ces0028, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics.
- David Bruner & Michael McKee & Rudy Santore, 2008.
"Hand in the Cookie Jar: An Experimental Investigation of Equity-based Compensation and Managerial Fraud,"
08-05, Department of Economics, Appalachian State University.
- David Bruner & Michael McKee & Rudy Santore, 2008. "Hand in the Cookie Jar: An Experimental Investigation of Equity-Based Compensation and Managerial Fraud," Southern Economic Journal, Southern Economic Association, vol. 75(1), pages 261-278, July.
- Michael Lechner, 2005. "The Empirical Analysis of East German Fertility after," Labor and Demography 0505005, EconWPA.
- Basu, Kaushik, 2001.
"Gender and Say: A Model of Household Behavior with Endogenously-Determined Balance of Power,"
01-01, Cornell University, Center for Analytic Economics.
- Kaushik Basu, 2006. "Gender and Say: a Model of Household Behaviour with Endogenously Determined Balance of Power," Economic Journal, Royal Economic Society, vol. 116(511), pages 558-580, 04.
- Kaushik Basu, 2004. "Gender and Say A Model of Household Behavior with Endogenously-determined Balance of Power," Harvard Institute of Economic Research Working Papers 2054, Harvard - Institute of Economic Research.
- Thomas Baumann & Carsten Schmidt, 2004. "The Jena video laboratory for economic experiments," Papers on Strategic Interaction 2004-06, Max Planck Institute of Economics, Strategic Interaction Group.
- 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.
- Holt, Charles A, 1986. "Preference Reversals and the Independence Axiom," American Economic Review, American Economic Association, vol. 76(3), pages 508-15, June.
- John Hey & Jinkwon Lee, 2005. "Do Subjects Separate (or Are They Sophisticated)?," Experimental Economics, Springer, vol. 8(3), pages 233-265, September.
- Starmer, Chris & Sugden, Robert, 1991. "Does the Random-Lottery Incentive System Elicit True Preferences? An Experimental Investigation," American Economic Review, American Economic Association, vol. 81(4), pages 971-78, September.
- Maurizio Mazzocco, 2007. "Household Intertemporal Behaviour: A Collective Characterization and a Test of Commitment," Review of Economic Studies, Oxford University Press, vol. 74(3), pages 857-895.
- Olivier Donni, 2001.
"Collective Household Labor Supply: Nonparticipation and Income Taxation,"
Cahiers de recherche CREFE / CREFE Working Papers
140, CREFE, Université du Québec à Montréal.
- Donni, Olivier, 2003. "Collective household labor supply: nonparticipation and income taxation," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 1179-1198, May.
- David Reiley & John List, 2008.
Artefactual Field Experiments
00091, The Field Experiments Website.
- Pahl, Jan, 1995. "His money, her money: Recent research on financial organisation in marriage," Journal of Economic Psychology, Elsevier, vol. 16(3), pages 361-376, September.
- Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
- Henry Stott, 2006. "Cumulative prospect theory's functional menagerie," Journal of Risk and Uncertainty, Springer, vol. 32(2), pages 101-130, March.
- 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.
- Robin Cubitt & Chris Starmer & Robert Sugden, 1998. "On the Validity of the Random Lottery Incentive System," Experimental Economics, Springer, vol. 1(2), pages 115-131, September.
- 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.
- Eckel, Catherine C. & Wilson, Rick K., 2004. "Is trust a risky decision?," Journal of Economic Behavior & Organization, Elsevier, vol. 55(4), pages 447-465, December.
- Hey, John D & Orme, Chris, 1994. "Investigating Generalizations of Expected Utility Theory Using Experimental Data," Econometrica, Econometric Society, vol. 62(6), pages 1291-1326, November.
- Geoffrey Lancaster & Pushkar Maitra & Ranjan Ray, 2006. "Endogenous Intra-household Balance of Power and its Impact on Expenditure Patterns: Evidence from India," Economica, London School of Economics and Political Science, vol. 73(291), pages 435-460, 08.
When requesting a correction, please mention this item's handle: RePEc:kap:theord:v:70:y:2011:i:1:p:45-64. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.