We examine risk preferences using the flood insurance decisions of over 100,000 households. In each contract …, households make a small stakes decision, the deductible, and a large stakes one, the coverage limit. Over 94 percent of household … their home's replacement cost. Households must be extremely risk averse to explain each of these choices with standard …

: group risk concern, group cooperation expectation, and pressure to conform to social norms. We found that ex post guilt … aversion and ex-post blame avoidance cause group members to be more risk concerned than individuals under uncertainty. These … concerns drive groups to choose the cooperation (and risk-reduction) strategy more frequently than individuals. Groups also …