Work

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

Year: 2013

Type: preprint

Abstract: 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.

Source: RePEc: Research Papers in Economics

Authors: Ola Andersson, Håkan J. Holm, Jean‐Robert Tyran, Erik Wengström

Institutions: Uppsala University, Research Institute of Industrial Economics, Lund University, University of Copenhagen, University of Vienna, Centre for Economic Policy Research

Language: English

Topic: Experimental Behavioral Economics Studies

Subfield: Safety Research

Field: Social Sciences

Domain: Social Sciences

Open Access status: green

Funders: Konkurrensverket, University of Cambridge

OpenAlex ID: W1759824521

Cites: 38

Cited by: 30

Related to: 10