Risk Taking and Social Exposure

Faralla, Valeria; Innocenti, Alessandro; Venturini, Eva

doi:10.2139/ssrn.2298784

Download This Paper

Open PDF in Browser

Add Paper to My Library

Risk Taking and Social Exposure

University of Siena LABISI Working Paper No. 46/2013

26 Pages Posted: 27 Jul 2013 Last revised: 8 Aug 2013

See all articles by Valeria Faralla

Alessandro Innocenti

University of Siena - Labsi Experimental Economics Laboratory; University of Siena - Department of Social, Political and Cognitive Sciences

Eva Venturini

University of Siena

Date Written: July 26, 2013

Abstract

The paper examines in the laboratory how risk-taking situations are affected by the conditions of observing other’s choices (observer) and being observed by others (source). By extending Yechiam et al.’s (2008) experimental design to the domain of gains we find that observers are more probable than sources to choose risky alternatives producing rare gains than equiprobable gains. The impact of social exposure is also analyzed and interpreted in the context of personality traits to assess how heterogeneity influences risky decisions.

Keywords: risky shift, social exposure, personality traits

JEL Classification: C91, D01, D81

Suggested Citation: Suggested Citation

Faralla, Valeria and Innocenti, Alessandro and Venturini, Eva, Risk Taking and Social Exposure (July 26, 2013). University of Siena LABISI Working Paper No. 46/2013, Available at SSRN: https://ssrn.com/abstract=2298784 or http://dx.doi.org/10.2139/ssrn.2298784