Social risk effects: the 'experience of social risk' factor

  • 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.

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Author:Florian DiekertORCiDGND, Timo Goeschl, Christian König-Kersting
Frontdoor URL
Publisher:Department of Economics, University of Heidelberg
Place of publication:Heidelberg
Type:Working Paper
Year of first Publication:2021
Publishing Institution:Universität Augsburg
Release Date:2023/04/24
Series:AWI Discussion Paper Series ; 704
Institutes:Wirtschaftswissenschaftliche Fakultät
Fakultätsübergreifende Institute und Einrichtungen
Wirtschaftswissenschaftliche Fakultät / Institut für Volkswirtschaftslehre
Fakultätsübergreifende Institute und Einrichtungen / Zentrum für Klimaresilienz
Wirtschaftswissenschaftliche Fakultät / Institut für Volkswirtschaftslehre / Professur für Umweltökonomik
Dewey Decimal Classification:3 Sozialwissenschaften / 30 Sozialwissenschaften, Soziologie / 300 Sozialwissenschaften
Licence (German):Deutsches Urheberrecht