Betrayal Aversion: Evidence from Brazil, China, Oman, Switzerland, Turkey, and the United States: Comment

Gary E. Bolton; Axel Ockenfels

doi:10.1257/aer.100.1.628

American Economic Review Vol. 100 No. 1 2010

Betrayal Aversion: Evidence from Brazil, China, Oman, Switzerland, Turkey, and the United States: Comment

Gary E. Bolton¹; Axel Ockenfels²

¹ Smeal College of Business, Penn State University, 334 Business Building, University Park, PA 16802. · ² Department of Economics, University of Cologne, Albertus Magnus Platz, D-50923 Köln, Germany.

Abstract

In a series of binary choice problems, we investigate how a chooser's risk taking changes when others share in their personal risk, either equally or unequally. We find that when the safe option yields inequality, the risky option is taken significantly more often. On the other hand, the inequality resulting from the risky choice does not affect risk taking. We also find that choosers tend to be less risk-averse in a one-person context compared to when the risk also affects the payoff of another. (C72, D81, Z13)

DOI: 10.1257/aer.100.1.628
Volume: 100
Issue: 1
Pages: 628-633
Language: en
Sources: bibtex:phds-export.bib crossref openalex

Betrayal Aversion: Evidence from Brazil, China, Oman, Switzerland, Turkey, and the United States: Comment

Abstract

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