RIEB Discussion Paper Series No.2020-23

RIEB Discussion Paper Series No.2020-23


Risks on Others


We investigate other regarding preferences when others are involved in some risks. We call such risks "risks on others (ROO)". We design a novel experiment to measure ROO, and also define theoretically the risk attitudes toward others under two dimensions: absolute terms, which characterize one's risk attitudes toward others without comparing with other individuals, and relative terms, which compare the risk attitudes between individuals. From our experiment, we find that decision makers exhibit robust risk averse behaviors, which contradicts to the most representative linear inequality aversion models by Fehr and Schmidt (1999). Utilizing our experimental setting which enables us to compare the risk attitudes toward others between subjects, we also investigate the effects of different types of ROO on other regarding behaviors.


Other-regarding preferences; Risk preferences; Inequality aversion

JEL Classification

C91, D63, D64, D81, D91


Takaaki HAMADA
Faculty of Economics, Toyo University
Junior Research Fellow, Research Institute for Economics & Business Administration, Kobe University

Tomohiro HARA
Department of Economics, University of Maryland at College Park