Risk Sharing Relations and Enforcement Mechanisms
We investigate whether the set of available enforcement mechanisms affects the formation of risk sharing relations by applying dyadic regression analysis to data from a specifically designed behavioural experiment, two surveys and a genealogical mapping exercise.� During the experiment participants are invited to form risk sharing relations under three institutional environments, each associated with different enforcement mechanisms: external, intrinsic, and endogenous extrinsic, i.e., the threat of (partial) social exclusion.� Dyads who are similar in age and gender, genetically related, or who belong to the same organizations with an economic purpose are more likely to share risk.� However, the latter are associated with less risk sharing when endogenous extrinsic incentives can be applied, while co-membership in religious congregations and being related by marriage support enforcement through such incentives.� We find no evidence of assortative grouping on risk preferences but, ex post, co-group members' risk-taking behavior converges.
|Date of creation:||01 Apr 2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.economics.ox.ac.uk/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:oxf:wpaper:wps/2008-14. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Caroline Wise)
If references are entirely missing, you can add them using this form.