Articles

Individual vs. couple behavior: an experimental investigation of risk preferences

M. ABDELLAOUI, O. L'HARIDON, C. PARASCHIV

Theory and Decision

août 2013, vol. 75, n°2, pp.175-191

Départements : Economie et Sciences de la décision, GREGHEC (CNRS)

Mots clés : Group decisions, Risk, Uncertainty, Prospect theory, Utility, Gender

http://ssrn.com/abstract=2229891


In this article, we elicit both individuals' and couples' preferences assuming prospect theory (PT) as a general theoretical framework for decision under risk. Our experimental method, based on certainty equivalents, allows to infer measurements of utility and probability weighting at the individual level and at the couple level. Our main results are twofold. First, risk attitude for couples is compatible with PT and incorporates deviations from expected utility similar to those found in individual decision making. Second, couples' attitudes towards risk are found to be consistent with a mix of individual attitudes, women being more influent on couples' preferences at low probability levels


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