Are you risk averse over other people's money?
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Date
2010-04-03Author
Chakravarty, Sujoy
Harrison, Glenn W.
Haruvy, Ernan
Rutstrom, E. Elisabet
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Show full item recordAbstract
We examine the question in the simplest possible setting using controlled laboratory experiments. We find a remarkable results: when an individual makes a decision for an anonymous stranger, he tends to exhibit less risk aversion. This results has significant implications for the design of contracts between principals and agents.
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- Working Papers [2627]