Are People More Risk-Taking in the Presence of the Opposite Sex?

Abstract

This paper investigates whether exposure to the opposite sex induces greater risk-taking in both males and females using a probability discounting procedure with hypothetical monetary rewards. Experimental subjects viewed pictures of opposite sex faces; control subjects viewed pictures of cars. Both males and females viewing opposite sex photos displayed a significant increase in risk tolerance, whereas the control subjects exhibited no significant change. Surprisingly, the attractiveness of the photo had no effect; subjects viewing photographs of attractive opposite sex persons displayed similar results as those viewing photographs of unattractive people.

Keywords: risk preferences, probability discounting, experimental economics, behavioral economics, arousal effect

JEL Classification: C91, D81