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Couple and individual willingness to take risks

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  • Boto-García, David
  • Bucciol, Alessandro

Abstract

This study analyses the relationship between the willingness to take risk (WTR) of a sentimental couple and its individual components. Using a survey-based measure collected in a lab experiment with 126 couples, we estimate a joint model for explaining female, male, and couple WTR. We control for socio-demographic characteristics and personality traits in the individual risk specifications and for the length of the relationship in the joint risk specification. We find that individual WTR is related to personality more than to socio-demographic variables. Couple WTR is equally determined by the individual WTR of each partner, once endogeneity arising from unobservable common factors is considered. This implies that risk-averse (risk-tolerant) individuals appear to be willing to take more (less) risk when behaving with the partner than he/she would like when behaving individually.

Suggested Citation

  • Boto-García, David & Bucciol, Alessandro, 2023. "Couple and individual willingness to take risks," Journal of Economic Psychology, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:joepsy:v:99:y:2023:i:c:s0167487023000776
    DOI: 10.1016/j.joep.2023.102676
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    More about this item

    Keywords

    Household’s risk preferences; Couples; Personality traits; Willingness to take risks; 3SLS;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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