Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/261069 
Year of Publication: 
2021
Series/Report no.: 
AWI Discussion Paper Series No. 704
Publisher: 
University of Heidelberg, Department of Economics, Heidelberg
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.
Subjects: 
Social risk
risk experience
decision-making under risk
behavioral economics
experiment
JEL: 
C72
C90
D81
D91
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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