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Risk taking on behalf of others: Does the timing of uncertainty revelation matter?

Author

Listed:
  • Cappelen, Alexander W.

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

  • Sørensen, Erik Ø.

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

  • Tungodden, Bertil

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

  • Xu, Xiaogeng

    (Dept. of Finance and Economics, Hanken School of Economics)

Abstract

Using a large, probability-based online panel representative of the general population in Norway, we examine how varying delays in the revelation of uncertainty affect risk-taking on behalf of others. We find a precisely estimated null effect of revelation delay on the average proportion choosing a lottery over a safe alternative. A hierarchical Bayesian model of rank-dependent utility also reveals no differences in underlying decision processes across conditions. However, we do observe a paternalistic tendency: participants place greater weight on their own risk preferences than on those they believe others to hold.

Suggested Citation

  • Cappelen, Alexander W. & Sørensen, Erik Ø. & Tungodden, Bertil & Xu, Xiaogeng, 2025. "Risk taking on behalf of others: Does the timing of uncertainty revelation matter?," Discussion Paper Series in Economics 13/2025, Norwegian School of Economics, Department of Economics.
    • Handle: RePEc:hhs:nhheco:2025_013
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    More about this item

    Keywords

    Risk-taking; decision-making; uncertainty;
    All these keywords.

    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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