Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272306 
Authors: 
Year of Publication: 
2023
Series/Report no.: 
ifo Working Paper No. 399
Publisher: 
ifo Institute - Leibniz Institute for Economic Research at the University of Munich, Munich
Abstract: 
Many personally risky decisions, such as innovation and entrepreneurship, have the potential to increase overall welfare by creating positive externalities for society. Rewarding such prosocial risk-taking may be an important strategy in addressing societal challenges like, for example, the climate emergency, by promoting innovation that has positive externalities for the environment. A fundamental constraint for policy makers in rewarding such behaviour are however individuals' distributive preferences. In this paper, I provide a theoretical framework and a first experimental test of how distributive preferences are affected by potential positive externalities of risky behaviour.
Subjects: 
Prosocial risk-taking
externalities
distributive preferences
fairness
JEL: 
D63
D62
H23
D81
C91
Document Type: 
Working Paper

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