Compensating for the Risk: Experimental Evidence on Giving in Risky Environments

Présentation de Mathieu Lefebvre (BETA, Université de Strasbourg)


Mathieu Lefebvre (BETA, Université de Strasbourg)
En collaboration avec Mickael Beaud et Julie Rosaz

Abstract: We investigate if and how individual giving decisions are affected in risky environments in which the recipient’s wealth is random. We observe that some influential inequality aversion theories have opposite predictions when we consider ex-post view of fairness and we report on dictator games laboratory experiments in which we carefully manipulate the riskiness of the recipient’s wealth. Our experimental data show no statistically significant impact of the recipient’s risk exposure on dictators’ giving decisions. This result is robust to both the experimental design (within or between subjects) and to the origin of the recipient’s risk exposure (chosen by the recipient or imposed to the recipient.

Keywords: Dictator games, risk, other-regarding preferences, inequality aversion, ex ante and ex post comparisons.