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This paper examines the effect of peers on individual risk taking. In the absence of informational motives, we investigate why social utility concerns may drive peer effects. We test for two main channels: utility from payoff differences and from conforming to the peer. We show experimentally...
Persistent link: https://www.econbiz.de/10009691154
This paper examines the effect of peers on individual risk taking. In the absence of informational motives, we investigate why social utility concerns may drive peer effects. We test for two main channels: utility from payoff differences and from conforming to the peer. We show experimentally...
Persistent link: https://www.econbiz.de/10009720583
We examine peer effects in risk taking with complete information and compare explanations for peer effects based on relative payoff concerns to explanations that allow peer choices to matter. We vary experimentally whether individuals can condition a simple lottery choice on the lottery choice,...
Persistent link: https://www.econbiz.de/10013064692
affecting risk-taking behavior among investors. Overconfidence (better than average, miscalibration, and excessive optimism) is …
Persistent link: https://www.econbiz.de/10013183902
and overconfidence in hard tasks) found in a large number of studies using non-incentivised self-reports. The latter …
Persistent link: https://www.econbiz.de/10011434351
Gender differences in voting patterns and political attitudes towards redistribution are well-documented. The experimental gender literature suggests several plausible behavioral explanations behind these differences, relating to gender differences in confidence concerning future relative income...
Persistent link: https://www.econbiz.de/10011523572
bet based on performance. The former procedure reproduces the "hard-easy effect" (overconfidence in easy tasks and …
Persistent link: https://www.econbiz.de/10010439679
procedure reproduces the "hard-easy effect" (overconfidence in easy tasks and underconfidence in hard tasks) found in a large …
Persistent link: https://www.econbiz.de/10010344292
We provide a preference-based rationale for endogenous overconfidence. Horizon-dependent risk aversion, combined with a … possibility to forget, can generate overconfidence and excessive risk taking in equilibrium. An "anxiety prone" agent, who is more … results to the literature on empirically observed overconfidence and excessive risk taking in several domains of financial and …
Persistent link: https://www.econbiz.de/10010482950
This paper theoretically and experimentally studies decision-making in risky and social environments. We explore the interdependence of individual risk attitudes and social preferences in form of inequality aversion as two decisive behavioral determinants in such contexts. Our model and the data...
Persistent link: https://www.econbiz.de/10011540812