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Risky choices and solidarity: disentangling different behavioural channels
JournalArticle (Originalarbeit in einer wissenschaftlichen Zeitschrift)
 
ID 4637961
Author(s) Strobl, Renate; Wunsch, Conny
Author(s) at UniBasel Wunsch, Conny
Strobl, Renate
Year 2021
Title Risky choices and solidarity: disentangling different behavioural channels
Journal Experimental Economics
Volume 24
Number 4
Pages / Article-Number 1185-1214
Abstract We investigate whether informal support is sensitive to the extent to which individuals can influence their income risk exposure by opting into risk. In a laboratory experiment with slum dwellers in Nairobi, we measure subjects' transfers to a worse-off partner under both random assignment, and self-selection into a safe or risky project. Our experimental design allows us to discriminate between different possible explanations for why giving behaviour might change when risk exposure is self-selected. We find that solidary support is independent of the partners' choice of risk exposure, which contradicts attributions of responsibility for neediness and ex-post choice egalitarianism. Instead, we find that support depends on donors' risk preferences. Risk-takers seem to feel less obliged to share the profits they earn from their choices compared to subjects who earn equally high profits by pure luck. Our results have important implications for anti-poverty policies that aim at encouraging risky investments.
Publisher Springer
ISSN/ISBN 1386-4157 ; 1573-6938
URL https://link.springer.com/article/10.1007/s10683-020-09694-4?utm_source=xmol&utm_medium=affiliate&utm_content=meta&utm_campaign=DDCN_1_GL01_metadata
edoc-URL https://edoc.unibas.ch/86724/
Full Text on edoc Available
Digital Object Identifier DOI 10.1007/s10683-020-09694-4
ISI-Number 000607966000001
Document type (ISI) Article
 
   

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