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Altruistic and risk preference of individuals and groups

Author

Listed:
  • Yoshio Kamijo

    (School of Economics and Management, Kochi University of Technology)

  • Teruyuki Tamura

    (School of Economics and Management, Kochi University of Technology)

Abstract

This study examines whether attitudes toward risk and altruism are affected by being in a group or being alone. Subjects in our experiment were requested only to show their faces to other members without any further communication, differing from previous studies. In experiments of both anonymous investments and donations, we found that subjects who made decisions in a group offered significantly lower amounts than individuals who made decisions alone, even controlling for individuals' risk and altruistic preferences. Our results indicate that people are more risk averse and self-interested when they are in a group.

Suggested Citation

  • Yoshio Kamijo & Teruyuki Tamura, 2016. "Altruistic and risk preference of individuals and groups," Working Papers SDES-2016-12, Kochi University of Technology, School of Economics and Management, revised Oct 2016.
  • Handle: RePEc:kch:wpaper:sdes-2016-12
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    File URL: http://www.souken.kochi-tech.ac.jp/seido/wp/SDES-2016-12.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Group decision; Altruism; Decision under risk;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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