Decisions under uncertainty in social contexts

• 成果类型: Article
• 署名作者: Mueller, Stephan; Rau, Holger A.
• 署名单位: University of Gottingen
• 刊物名称: GAMES AND ECONOMIC BEHAVIOR
• ISSN/ISSBN: 0899-8256
• DOI: 10.1016/j.geb.2019.04.006
• 发表日期: 2019
• 页码: 73-95
• 关键词: Choice under uncertainty; Social comparison; inequality aversion; risk preferences

摘要

This paper theoretically and experimentally studies decision-making in risky and social environments. We explore the interdependence of two decisive behavioral determinants in such environments: risk attitudes and social preferences in the form of inequality aversion. Our model and the data demonstrate that individual risk aversion is attenuated when lagging behind peers, whereas it is amplified under favorable income inequality. Moreover, people's choices are not only context-dependent, but they are sensitive to their degree of inequality aversion. The majority of our experimental findings cannot be rationalized by rank-dependent utility models or cumulative prospect theory. Our results contribute to the basic understanding of the underlying motives of social incentives in firms, private households' saving decisions, employees' career-track choices or charitable giving under uncertainty. (C) 2019 Elsevier Inc. All rights reserved.