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Collective risk-taking by couples: individual vs household risk

Author

Listed:
  • Jiakun Zheng

    (Aix Marseille Univ, CNRS, AMSE, Centrale Méditerranée)

  • Hélène Couprie

    (Aix Marseille Univ, CNRS, LEST)

  • Astrid Hopfensitz

    (Emlyon Business School, CNRS, Université Lumière Lyon 2, Université Jean Monnet Saint-Etienne, GATE)

Abstract

101 real couples participated in a controlled experimental risk-taking task involving variations in household and individual income risks, while controlling for ex-ante income inequality. Our design disentangles the effects of household risk, intra-household risk inequality, and ex-post payoff inequality. We find that most couples (about 79%) pooled their risk at the household level when risks were borne symmetrically, but a significant proportion of couples (about 36%) failed to do so when individual risks were borne asymmetrically. Additionally, within the scope of the control variables we have utilized, we find that intra-household risk inequality has a larger impact on non-married couples compared to married ones. These results remain robust when the analysis is limited to couples in which both spouses are risk-averse. Lastly, we find that preferences for household efficiency are significantly correlated across both certain and risky situations. However, couples consisting of two income-maximizing spouses do not show greater aversion to risk inequality compared to couples with other compositions.

Suggested Citation

  • Jiakun Zheng & Hélène Couprie & Astrid Hopfensitz, 2025. "Collective risk-taking by couples: individual vs household risk," Theory and Decision, Springer, vol. 98(4), pages 599-628, June.
    • Handle: RePEc:kap:theord:v:98:y:2025:i:4:d:10.1007_s11238-024-10021-z
    DOI: 10.1007/s11238-024-10021-z
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