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Risk-taking for others under accountability

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  • Pahlke, Julius
  • Strasser, Sebastian
  • Vieider, Ferdinand M.

Abstract

We let subjects take risky decisions that affect themselves and a passive recipient. Adding a requirement to justify their choices significantly reduces loss aversion. This indicates that such an accountability mechanism may be effective at debiasing loss aversion in agency relations.

Suggested Citation

  • Pahlke, Julius & Strasser, Sebastian & Vieider, Ferdinand M., 2012. "Risk-taking for others under accountability," Economics Letters, Elsevier, vol. 114(1), pages 102-105.
    • Handle: RePEc:eee:ecolet:v:114:y:2012:i:1:p:102-105
    DOI: 10.1016/j.econlet.2011.09.037
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    References listed on IDEAS

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    More about this item

    Keywords

    Risk attitude; Prospect theory; Responsibility; Accountability; Loss aversion;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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