Diekert, Florian ; Goeschl, Timo ; König-Kersting, Christian
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Abstract
Anticipating "social risk", or risk caused by humans, affects decision-making differently from anticipating natural risk. Drawing upon a large sample of the US population (n=3,982), we show that the phenomenon generalizes to risk experience. Experiencing adverse outcomes caused by another human reduces future risk-taking, but experiencing the same outcome caused by nature does not. While puzzling from a consequentialist perspective, the Experience of Social Risk Factor that we identify deepens our understanding of decision-making in settings in which outcomes are co-determined by different sources of uncertainty. Our findings imply that a unifying theory of social risk effects requires new explanations.
| Document type: | Working paper |
|---|---|
| Series Name: | Discussion Paper Series / University of Heidelberg, Department of Economics |
| Volume: | 0704 |
| Place of Publication: | Heidelberg |
| Date Deposited: | 02 Aug 2021 12:13 |
| Date: | July 2021 |
| Number of Pages: | 32 |
| Faculties / Institutes: | The Faculty of Economics and Social Studies > Alfred-Weber-Institut for Economics |
| DDC-classification: | 330 Economics |
| Controlled Keywords: | behavioral economics, experiment |
| Uncontrolled Keywords: | social risk, risk experience, decision-making under risk |
| Series: | Discussion Paper Series / University of Heidelberg, Department of Economics |
