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Social capital and risk-taking behavior

In: Elgar Companion to Social Capital and Health

Author

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  • Sherman Folland

Abstract

This chapter presents a mathematical model of social capital in which one’s utility increases when there is a gain in social capital. Risk-taking behavior becomes less attractive when the person has “more to lose†. A graphical extension to the model adds money and resources so that the risk of loss affects the trade-off between money and the “bad†, which is now less desirable. The review of recent empirical evidence for cigarette smoking, illegal drugs and alcohol offers support to the results from this model.

Suggested Citation

  • Sherman Folland, 2018. "Social capital and risk-taking behavior," Chapters, in: Sherman Folland & Eric Nauenberg (ed.), Elgar Companion to Social Capital and Health, chapter 10, pages 137-146, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:16697_10
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