Let Me See You! A Video Experiment on the Social Dimension of Risk Preferences
19 Pages Posted: 4 Oct 2007
Date Written: April 2007
Previous studies have shown that decision makers are less other-regarding when their own payoff is risky than when it is sure. Empirical observations also indicate that people care more about identiﬁable than unidentiﬁable others. In this paper, we report on an experiment designed to explore whether rendering the other identifiable − via a short speechless video − can affect the relation between other-regarding concerns and attitudes toward social risk. For this sake, we elicit risk attitudes under two treatments differing in whether the actor can see the other or not. We ﬁnd that seeing the other does not affect behavior signiﬁcantly: regardless of the treatment, individuals are mainly self-oriented as to social allocation of risk, though they are other-regarding with respect to expected payoff levels.
Keywords: Risk attitudes, other-regarding concerns, identiﬁability
JEL Classification: C90, D63, D81
Suggested Citation: Suggested Citation