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On the social dimension of time and risk preferences: An experimental study

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  • M. Vittoria Levati

    ()

  • Werner Güth

    ()

  • Matteo Ploner

Abstract

We report on an experiment designed to explore the interrelation of other-regarding concerns with attitudes towards risk and delay when the latter have a social dimension, i.e., pertain to one's own and another person's payoffs. For this sake, we compare evaluations of several prospects, each of which allocates either certain or risky and either immediate or delayed payoffs to the actor and to another participant. We find that individuals are mainly self-oriented as to social allocation of risk and delay, although they are other-regarding with respect to expected payoff levels.

Suggested Citation

  • M. Vittoria Levati & Werner Güth & Matteo Ploner, 2005. "On the social dimension of time and risk preferences: An experimental study," Papers on Strategic Interaction 2005-26, Max Planck Institute of Economics, Strategic Interaction Group.
  • Handle: RePEc:esi:discus:2005-26
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    References listed on IDEAS

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    1. Gary Charness & Matthew Rabin, 2002. "Understanding Social Preferences with Simple Tests," The Quarterly Journal of Economics, Oxford University Press, vol. 117(3), pages 817-869.
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    More about this item

    Keywords

    Willingness to accept; Risk attitudes; Time preferences; Other-regarding concerns;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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