This paper studies the effects of social comparison on risk taking behavior. In our framework, decision makers evaluate the consequences of their choices as changes with respect to both their own and their peers’ conditions. We test experimentally whether different positions in the social ranking determine different risk attitudes. Subjects interact in a simulated workplace environment, where they receive possibly different wages as compensation for effort and then undertake a risky decision that may give them an extra gain. We find that social comparison matters for risk attitudes. In addition, risk aversion decreases with the size of social gains. As a consequence, subjects are less risk averse in social loss than in small social gain, whereas their risk attitudes do not differ between social loss and large social gain

Gamba, A., Manzoni, E., Stanca, L. (2017). Social comparison and risk taking behavior. THEORY AND DECISION, 82(2), 221-248 [10.1007/s11238-016-9562-z].

Social comparison and risk taking behavior

Gamba, A
;
Manzoni, E;Stanca, L
2017

Abstract

This paper studies the effects of social comparison on risk taking behavior. In our framework, decision makers evaluate the consequences of their choices as changes with respect to both their own and their peers’ conditions. We test experimentally whether different positions in the social ranking determine different risk attitudes. Subjects interact in a simulated workplace environment, where they receive possibly different wages as compensation for effort and then undertake a risky decision that may give them an extra gain. We find that social comparison matters for risk attitudes. In addition, risk aversion decreases with the size of social gains. As a consequence, subjects are less risk averse in social loss than in small social gain, whereas their risk attitudes do not differ between social loss and large social gain
Articolo in rivista - Articolo scientifico
Social comparison, Risk aversion, Interdependent preferences, Reference point
English
2017
82
2
221
248
none
Gamba, A., Manzoni, E., Stanca, L. (2017). Social comparison and risk taking behavior. THEORY AND DECISION, 82(2), 221-248 [10.1007/s11238-016-9562-z].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/126229
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