Culture and Risk-Sharing Networks

28 Pages Posted: 6 Feb 2017

See all articles by Jo Laban Peryman

Jo Laban Peryman

Behavioural Business Lab, RMIT University

Date Written: September 8, 2015


I investigate how students from different cultures form risk-sharing networks when they come to study at university, and how these network structures affect risk attitudes in different contexts. Using an online survey, I find that students from collectivist cultures such as China form larger financial risk-sharing networks at university than students from individualist cultures such as Britain. In the financial context, having a larger network increases the willingness to take risks for collectivists but not individualists. On the other hand, students from collectivist cultures are less willing to take risks with their interpersonal relationships than those from individualist cultures. One likely reason for this is that as networks are relied on more for risk-sharing in collectivist cultures, the value of maintaining relationships is increased. This paper adds to the literature on cultural differences in risk attitudes, by focusing on social networks, which differ culturally and affect risk attitudes.

Keywords: culture, risk, collectivism, individualism, networks

JEL Classification: D81, Z13

Suggested Citation

Laban Peryman, Jo, Culture and Risk-Sharing Networks (September 8, 2015). Available at SSRN: or

Jo Laban Peryman (Contact Author)

Behavioural Business Lab, RMIT University ( email )

445 Swanston Street
Melbourne, 3000

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