Working Paper No. 976

Deciding for Others Reduces Loss Aversion

Published: September 17, 2013Pages: 38Keywords: Risk taking; Loss aversion; ExperimentJEL-codes: C91; D03; D81; G02
Published version

Deciding for Others Reduces Loss Aversion Ola Andersson, Håkan J. Holm, Jean-Robert Tyran and Erik Wengström


We study risk taking on behalf of others, both with and without potential losses. A large-scale incentivized experiment is conducted with subjects randomly drawn from the Danish population. On average, decision makers take the same risks for other people as for themselves when losses are excluded. In contrast, when losses are possible, decisions on behalf of others are more risky. Using structural estimation, we show that this increase in risk stems from a decrease in loss aversion when others are affected by their choices.

Ola Andersson

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Mob: +46 70 432 2450
ola.andersson@ifn.se

Integrating Immigrants into the Nordic Labour Markets

An Overall Perspective

Pages-from-2019-Calmfors-Gassen---Integrating-Immigrants-into-the-Nordic-Labour-Markets.gif

Denmark, Finland, Norway and Sweden face similar problems of integrating large groups of immigrants, especially low-educated ones from outside the EU, into their labour markets. In this volume, edited by Lars Calmfors, IFN, and Nora Sánchez Gassen in cooperation with researchers from across the Nordic Region analyse how labour market integration of immigrants can be promoted. 

About the book

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