Individual vs. couple behavior: an experimental investigation of risk preferences

Mohammed Abdellaoui (1) , Olivier L’haridon (2) , Corina Paraschiv (1, 3)

1 GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC
2 CREM - Centre de recherche en économie et management
3 UPD5 - Université Paris Descartes - Paris 5

In this article, we elicit both individuals' and couples' preferences assuming prospect theory (PT) as a general theoretical framework for decision under risk. Our experimental method, based on certainty equivalents, allows to infer measurements of utility and probability weighting at the individual level and at the couple level. Our main results are twofold. First, risk attitude for couples is compatible with PT and incorporates deviations from expected utility similar to those found in individual decision making. Second, couples' attitudes towards risk are found to be consistent with a mix of individual attitudes, women being more influent on couples' preferences at low probability levels.

Mots clés: group decisions; prospect theory; Couples; gender; utility; uncertainty; risk

Domaines: Economies et finances

Mohammed Abdellaoui, Olivier L’haridon, Corina Paraschiv. Individual vs. couple behavior: an experimental investigation of risk preferences. Theory and Decision, 2012, 75 (2), pp.175-191. ⟨10.1007/s11238-012-9322-7⟩. ⟨halshs-00801311⟩