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Young adults gamble less when observed by peers

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  • Tymula, Agnieszka
  • Whitehair, Jackson

Abstract

The impact of peer presence on the choices made by young people is yet to be fully understood. Using an incentive compatible experiment, we investigate whether: (1) young people’s willingness to accept known and unknown risks varies when in the presence of an observer of the similar age compared to in private and (2) whether these preferences are affected by having observed peer’s decisions. We find that young adults do not gamble more when observed by peers, rather they become more ambiguity averse.

Suggested Citation

  • Tymula, Agnieszka & Whitehair, Jackson, 2018. "Young adults gamble less when observed by peers," Journal of Economic Psychology, Elsevier, vol. 68(C), pages 1-15.
    • Handle: RePEc:eee:joepsy:v:68:y:2018:i:c:p:1-15
    DOI: 10.1016/j.joep.2018.07.005
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    Cited by:

    1. Albert, Philipp & Kübler, Dorothea & Silva-Goncalves, Juliana, 2022. "Peer effects of ambition," Journal of Economic Behavior & Organization, Elsevier, vol. 193(C), pages 161-195.
    2. Aljoscha Minnich & Andreas Lange, 2023. "Ambiguity Attitudes of Individuals and Groups in Gain and Loss Domains," CESifo Working Paper Series 10781, CESifo.
    3. Tymula, Agnieszka, 2019. "An experimental study of adolescent behavior under peer observation: Adolescents are more impatient and inconsistent, not more risk-taking, when observed by peers," Journal of Economic Behavior & Organization, Elsevier, vol. 166(C), pages 735-750.
    4. Tymula, Agnieszka & Wang, Xueting, 2021. "Increased risk-taking, not loss tolerance, drives adolescents’ propensity to choose risky prospects more often under peer observation," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 439-457.
    5. Grimm, Stefan, 2018. "Show What You Risk - Norms for Risk Taking," Rationality and Competition Discussion Paper Series 119, CRC TRR 190 Rationality and Competition.

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    More about this item

    Keywords

    Observation; Risk; Uncertainty;
    All these keywords.

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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