1 Introduction
2 Design and methodology
2.1 General setup
2.2 Treatments
2.3 Lab details
3 Results
3.1 Probability predictions
3.2 Risk aversion
3.3 Social comparison
Individual info | Social info: loss | Social info: loss and choice | ||||
---|---|---|---|---|---|---|
WTP | WTP-SEL | WTP | WTP-SEL | WTP | WTP-SEL | |
Independent risks | 24.69 (\(N=20\)) | 14.15 (\(N=20\)) | 23.23 (\(N=30\)) | 12.12 (\(N=30\)) | 22.27 (\(N=25\)) | 11.57 (\(N=25\)) |
Positively correlated risks | 24.33 (\(N=24\)) | 13.84 (\(N=24\)) | 19.68 (\(N=35\)) | 9.98 (\(N=35\)) | 23.36 (\(N=40\)) | 12.85 (\(N=40\)) |
Mann–Whitney test |
\(p=0.741\)
|
\(p=0.479\)
|
\(p=0.111\)
|
\(p=0.211\)
|
\(p=0.562\)
|
\(p=0.618\)
|
Levels | First difference | |||
---|---|---|---|---|
No period controls | Controlling for period | No period controls | Controlling for period | |
Historical frequency of own losses | 0.052** | 0.052** | 0.028** | 0.028** |
Historical frequency of others’ losses (4 people) | 0.091** | 0.091** | 0.050** | 0.050** |
F-test testing own \(=\) 4 others\(^{a}\)
|
\((<)\)
\(p<0.01\)
| (<) \(p < 0.01\)
| (\(=\)) \(p=0.277\)
| (\(=\)) \(p=0.277\)
|
F-test testing own \(=\) 1 other\(^{a}\)
|
\((>)\)
\(p<0.01\)
| (>) \(p < 0.01\)
| (\(=\)) \(p=0.129\)
| (\(=\)) \(p=0.129\)
|
Levels | First differences | |||
---|---|---|---|---|
No period controls | Controlling for period | No period controls | Controlling for period | |
Change in historical frequency of own losses | 0.071** | 0.073** | 0.055** | 0.054** |
Change in historical frequency of others’ losses (4 people) | 0.081** | 0.086** | 0.017 | 0.017 |
F-test testing own = 4 others\(^{a}\)
| (\(=\)) \(p=0.765\)
| (\(=\)) \(p=0.678\)
| (\(=\)) \(p=0.398\)
| (\(=\)) \(p=0.391\)
|
F-test testing own = 1 other\(^{a}\)
| (>) \(p<0.01\)
| (>) \(p<0.01\)
| (>) \(p=0.029\)
| (>) \(p=0.028\)
|
# Other group members insured in preceding period | All periods | Only period 2 | ||
---|---|---|---|---|
WTP (mean) | Insured (%) | WTP (mean) | Insured (%) | |
0 | 23.62 | 57.14 | 20.5 | 46.15 |
1 | 24.24 | 61.46 | 24.76 | 61.11 |
2 | 22.92 | 55.80 | 24.72 | 62.96 |
3 | 22.06 | 56.16 | 21.5 | 50.00 |
4 | 23.80 | 57.19 | 19.1 | 60.00 |