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Investment in Sister's Children as Behavior towards Risk

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  • Diamond, Arthur M, Jr
  • Locay, Luis

Abstract

A risk-averse man will invest in his sister's children if he cares about his genetic relatedness to future generations and if he is unsure about being the father of his wife's children. The model in this paper is an advance over the earlier expected-relatedness models in that it permits mixed investment in both sister's and wife's children and also permits investment in sister's children at higher levels of paternity probability. Estimates from ordered logits suggest that paternity probability is an important determinant of investment in sister's children and that some investment in sister's children occurs even at high levels of paternity probability. Copyright 1989 by Oxford University Press.

Suggested Citation

  • Diamond, Arthur M, Jr & Locay, Luis, 1989. "Investment in Sister's Children as Behavior towards Risk," Economic Inquiry, Western Economic Association International, vol. 27(4), pages 719-735, October.
    • Handle: RePEc:oup:ecinqu:v:27:y:1989:i:4:p:719-35
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    Cited by:

    1. Francesconi, Marco & Ghiglino, Christian & Perry, Motty, 2009. "On the Origin of the Family," IZA Discussion Papers 4637, Institute of Labor Economics (IZA).
    2. Francesconi, Marco & Ghiglino, Christian & Perry, Motty, 2009. "On the Origin of the Family," IZA Discussion Papers 4637, Institute for the Study of Labor (IZA).
    3. Brishti Guha, 2012. "Gambling on Genes: Ambiguity Aversion Explains Investment in Sisters’ Children," Working Papers 33-2012, Singapore Management University, School of Economics.
    4. Brishti Guha, 2012. "Grandparents as Guards: A Game Theoretic Analysis of Inheritance and Post Marital Residence in a World of Uncertain Paternity," Working Papers 37-2012, Singapore Management University, School of Economics.
    5. Fujii, Tomoki, 2017. "Dynamic Poverty Decomposition Analysis: An Application to the Philippines," World Development, Elsevier, vol. 100(C), pages 69-84.
    6. Francesconi, Marco & Ghiglino, Christian & Perry, Motty, 2016. "An evolutionary theory of monogamy," Journal of Economic Theory, Elsevier, vol. 166(C), pages 605-628.

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