Guilty group decisions! Risk preferences under time pressure

• Main Authors: Cheo, Rui Ming, Neo, Van Myran Wei Ren, Teo, Yu Liang
• Other Authors: Yan Jubo
• Format: Final Year Project
• Language: English
• Published: 2017
• Subjects: DRNTU::Social sciences::Economic theory
• Online Access: http://hdl.handle.net/10356/69931
• Institution: Nanyang Technological University

Literature findings on individual risk preference in social settings appear mixed. Following the notion of higher individual risk aversion in group decisions from ex ante guilt and blame, investigations were carried out to determine the mechanism behind this heighten risk aversion. The combined impacts of time pressure were further included to extend findings on ex ante guilt and blame. A between-subject experimental design based on Multiple Price Listing was used to elicit for risk preferences with risk estimation via CRRA utility models. In the absence of communication, both guilt and blame results in heightened risk aversion and this aversion is primarily driven by guilt. Under time-pressured situations, it was also found to enhance the effects of guilt and blame aversion in the form of raising the saliency thereby amplifying the effects than in the manner of masking them.