Collective vs. Individual Risk Attitudes¶
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 . Berlin: DIW Berlin.
Contact |
Syear |
Respondents |
Dataset |
Variables |
Availability |
Field |
Method |
Replication |
|---|---|---|---|---|---|---|---|---|
Olga Gorelkina (University of Liverpool) |
2016 |
497 households (994 individuals) |
ilottery |
exp_erg6, exp_erg8, exp_euro4, exp_z6, exp_erg4, exp_euro9, exp_z7, exp_euro8, exp_z5, exp_euro6, exp_z2, exp_erg7, exp_z3, exp_euro1, exp_split, exp_euro7, exp_euro3, exp_erg2, exp_erg10, exp_z1, exp_erg9, exp_erg5, exp_euro5, exp_erg3, exp_euro2, exp_z4, exp_Nr, exp_erg1 |
04/2019 |
Economics |
Experiment |