On the Social Dimension of Time and Risk Preferences: An Experimental Study

12 Pages Posted: 18 Apr 2008

See all articles by Werner Guth

Werner Guth

Max Planck Institute of Economics; CESifo (Center for Economic Studies and Ifo Institute)

M. Vittoria Levati

Max Planck Society for the Advancement of the Sciences - Strategic Interaction Group

Matteo Ploner

Scuola Superiore Sant'Anna di Pisa

Abstract

When explaining risk taking, inter-temporal allocation, and distributing behavior, economists rely on risk, time, and other-regarding preferences but offer no guidance on how these three crucial aspects are interrelated. We report on an experiment exploring such interrelation. For this sake, we compare evaluations of several prospects, each of which allocates certain or risky and immediate or delayed payoffs to the actor and to another participant. We find that individuals are self-oriented as to social allocation of risk and delay and other-regarding with respect to expected payoffs.

Keywords: C91, D63, D81

Suggested Citation

Güth, Werner and Levati, M. Vittoria and Ploner, Matteo, On the Social Dimension of Time and Risk Preferences: An Experimental Study. Economic Inquiry, Vol. 46, No. 2, pp. 261-272, April 2008. Available at SSRN: https://ssrn.com/abstract=1120569 or http://dx.doi.org/10.1111/j.1465-7295.2007.00067.x

Werner Güth (Contact Author)

Max Planck Institute of Economics ( email )

Kahlaische Strasse 10
D-07745 Jena, 07745
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

M. Vittoria Levati

Max Planck Society for the Advancement of the Sciences - Strategic Interaction Group ( email )

D-07745 Jena
Germany

Matteo Ploner

Scuola Superiore Sant'Anna di Pisa ( email )

Biblioteca Scuola Superiore Sant'Anna
Piazza Martiri della Liberta, n. 33
Pisa, 56127
Italy

Register to save articles to
your library

Register

Paper statistics

Downloads
3
Abstract Views
364
PlumX Metrics