Working Paper No. 989

Risking Other People’s Money: Experimental Evidence on Bonus Schemes, Competition, and Altruism

Published: November 19, 2013Pages: 49Keywords: Incentives; Competition; Hedging; Risk taking; Social preferencesJEL-codes: C72; C90; D30; D81

Risking Other People’s Money: Experimental Evidence on Bonus Schemes, Competition, and Altruism Ola Andersson, Håkan J. Holm, Jean-Robert Tyran and Erik Wengström


We study risk taking on behalf of others in an experiment on a large random sample. The decision makers in our experiment are facing high-powered incentives to increase the risk on behalf of others through hedged compensation contracts or with tournament incentives. Compared to a baseline condition without such incentives, we find that the decision makers respond strongly to these incentives that result in an increased risk exposure of others. However, we find that the increase in risk taking is mitigated by altruistic preferences and pro-social personality traits.

 

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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