.. _Collective vs. Individual Risk Attitudes:

Collective vs. Individual Risk Attitudes 
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**Short Description:** Household decision making with regard to consumption and investment relies on its members’ risk attitudes. The SOEP-IS data collected in this experiment shines a light on how the individual risk preferences are aggregated in a household and how joint decisions about risky investments are made.

**Experimental Details:** Each participant makes an individual investment decision. The household is given 10 € and they either collectively decide how much to invest (= treatment 1), or a randomly chosen decision maker decides for the household (= treatment 2).

**Incentives:** Willingness to pay for 11 lotteries (probability= 0.5) from 10 EUR endowment.
Xlow=10-qi Xhigh=10+2qi	Min. Payoff: 0 €/ Max. Payoff: 30 €

**Available Papers:** 

*Engel, Christoph, Alexandra Fedorets, and Olga Gorelkina*. 2018. How Do Households Allocate Risk? `SOEPpapers 1000 <https://www.diw.de/de/diw_01.c.611701.de/publikationen/soeppapers/2018_1000/how_do_households_allocate_risk.html>`_ . Berlin: DIW Berlin.


.. csv-table::
    :file: csv/Collective vs. Individual Risk Attitudes.csv
    :header-rows: 1