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  1. How do risk attitudes affect pro-social behavior? Theory and experiment.Sean Fahle & Santiago I. Sautua - 2020 - Theory and Decision 91 (1):101-122.
    We explore how risk preferences affect pro-social behavior under uncertainty. We analyze a modified dictator game in which the dictator can, by reducing her own sure payoff, increase the odds that an unknown recipient wins a lottery. We first augment a standard social preferences model with reference-dependent risk attitudes and then test the model’s predictions for the dictator’s giving behavior using a laboratory experiment. Consistent with the predictions of the model, we find that the relationship between giving behavior and a (...)
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  • Income inequality and risk taking: the impact of social comparison information.Ulrich Schmidt, Levent Neyse & Milda Aleknonyte - 2019 - Theory and Decision 87 (3):283-297.
    In contrast to the assumptions of standard economic theory, recent experimental evidence shows that the income of peers has a systematic impact on observed degrees of risk aversion. This paper reports the findings of two experiments examining the impact of income inequality on risk preferences and whether the knowledge of inequality mediates the decisions. In Experiment 1, participants who were recruited for a real-effort task were paid either a low wage or a high wage. Half of the participants were aware (...)
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  • Socially interdependent risk taking.Alexandros Karakostas, Giles Morgan & Daniel John Zizzo - 2023 - Theory and Decision 95 (3):365-378.
    We report the results of an experiment on how individual risk taking clusters together when subjects are informed of peers’ previous risk taking decisions. Subjects are asked how much of their endowment they wish to allocate in a lottery in which there is a 50% chance the amount they invest will be tripled and a 50% chance their investment will be lost. We use a 2 × 2 factorial design varying: (i) whether the subjects initially observed high or low investment (...)
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  • The Peer Effects of the Usage of Credit Cards in Rural Areas of China: Evidence from Rural China.Dongliang Cai, Jun Ou, Kefei Han & Yang Lyu - 2022 - Complexity 2022:1-11.
    This paper aims to explore whether the usage of credit cards has peer effects in rural areas of China. The results suggest that the usage of credit cards will be affected by the behavior of other farmers; namely, the usage of credit cards has peer effects in rural areas. We also verify that women, older, and low-academic farmers show stronger peer effects. The results emphasize that, compared with the mass farmers and vulnerable farmers, the usage of elite farmers is more (...)
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