RISK TAKING FOR ONESELF AND OTHERS: A STRUCTURAL MODEL APPROACH.

Economic theory makes no predictions about social factors affecting decisions under risk. We examine situations in which a decision maker decides for herself and another person under conditions of payoff equality, and compare them to individual decisions. By estimating a structural model, we find th...

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Publicado en:Economic Inquiry Vol. 54; no. 2; pp. 879 - 895
Autores principales: Vieider, Ferdinand M., Villegas ‐ Palacio, Clara, Martinsson, Peter, Mejía, Milagros
Formato: Artículo
Publicado: Wiley-Blackwell Apr2016
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: RISK TAKING FOR ONESELF AND OTHERS: A STRUCTURAL MODEL APPROACH.
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        au:
          Vieider, Ferdinand M.
          Villegas ‐ Palacio, Clara
          Martinsson, Peter
          Mejía, Milagros
        affil:
          Professor, Department of Economics, University of Reading, Reading UK
          Risk & Development Group, WZB Berlin Social Science Center, Berlin Germany
          Associate Professor, Department of Geosciences and Environment, National University of Colombia, Medellín Campus, Medellín Colombia
          Professor, Department of Economics, University of Gothenburg, Gothenburg Sweden
          Independent Consultant, Instituto del Perù, Universidad de San Martin de Porres, San Isidro Perù
      su:
        Economics
        Risk aversion
        Prospect theory
        Economic decision making
        Structural models
        Purchasing power parity
        Expected utility
      sug:
        subj:
          Economics
          Risk aversion
          Prospect theory
          Economic decision making
          Structural models
          Purchasing power parity
          Expected utility
      ab: Economic theory makes no predictions about social factors affecting decisions under risk. We examine situations in which a decision maker decides for herself and another person under conditions of payoff equality, and compare them to individual decisions. By estimating a structural model, we find that responsibility leaves utility curvature unaffected, but accentuates the subjective distortion of very small and very large probabilities for both gains and losses. We also find that responsibility reduces loss aversion, but that these results only obtain under some specific definitions of the latter. These results serve to generalize and reconcile some of the still largely contradictory findings in the literature. They also have implications for financial agency, which we discuss.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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