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Individual and couple decision behavior under risk: evidence on the dynamics of power balance

Author

Listed:
  • André de Palma

    (ENS Cachan - École normale supérieure - Cachan, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, IUF - Institut universitaire de France - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche, X - École polytechnique - IP Paris - Institut Polytechnique de Paris)

  • Nathalie Picard

    (X - École polytechnique - IP Paris - Institut Polytechnique de Paris, THEMA - Théorie économique, modélisation et applications - UCP - Université de Cergy Pontoise - Université Paris-Seine - CNRS - Centre National de la Recherche Scientifique, INED - Institut national d'études démographiques)

  • Anthony Ziegelmeyer

    (Max Planck Institute of Economics - Max-Planck-Gesellschaft, Faculty of Economics and Management - TUB - Technical University of Berlin / Technische Universität Berlin)

Abstract

This article 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.

Suggested Citation

  • André de Palma & Nathalie Picard & Anthony Ziegelmeyer, 2011. "Individual and couple decision behavior under risk: evidence on the dynamics of power balance," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00783737, HAL.
    • Handle: RePEc:hal:cesptp:hal-00783737
    DOI: 10.1007/s11238-009-9179-6
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