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How would You Decide on behalf of Your Friend?

Author

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  • Anita Kolnhofer-Derecskei

    (Óbuda University)

Abstract

Several prominent economists have underlined that actors are often concerned about the well-being (or feelings) of others. It seems ‘homo oeconimicus’ is selfish/rational and acts like a Good Samaritan at the same time. But being a Good Samaritan and deciding about somebody else’s property is not a big deal. The aim of this study is to observe endowment heterogeneity in the case of a risky financial decision. Ownership and endowment effects were measured through using within-subjects design, i.e. two gambling situations were offered to subjects. Firstly, they should assess risks and allocate their own property. Secondly, they had to decide on behalf of one of their friends. This paper does not provide a theoretical summing up, but focuses on empirical findings. Using game experiment it was found that ownership plays a role in explaining the outcome of a risky financial situation.

Suggested Citation

  • Anita Kolnhofer-Derecskei, 2017. "How would You Decide on behalf of Your Friend?," Proceedings- 11th International Conference on Mangement, Enterprise and Benchmarking (MEB 2017),, Óbuda University, Keleti Faculty of Business and Management.
    • Handle: RePEc:pkk:meb017:195-204
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    File URL: http://kgk.uni-obuda.hu/sites/default/files/16_Kolnofer-Derecskei.pdf
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    References listed on IDEAS

    as
    1. Jochen Reb & Terry Connolly, 2007. "Possession, feelings of ownership and the endowment effect," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 2, pages 107-114, April.
    2. Thaler, Richard, 1980. "Toward a positive theory of consumer choice," Journal of Economic Behavior & Organization, Elsevier, vol. 1(1), pages 39-60, March.
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    Cited by:

    1. Nagy Viktor, 2018. "Evaluation of Decision Effectiveness Over Time," Economics and Culture, Sciendo, vol. 15(2), pages 34-42, December.
    2. Kolnhofer-Derecskei Anita, 2017. "The Indifferent, the Good Samaritan, the Brave and the Agent in Allais Paradox situation – or How Endowment Effect Influences Our Decision in Case of Allais Paradox?," Organizacija, Sciendo, vol. 50(4), pages 299-313, December.

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