A Simple Risk-Sharing Experiment
Bone, John and Hey, John D. and Suckling, John (2000) A Simple Risk-Sharing Experiment. [Discussion Paper]. p. 34. Discussion Papers in Economics (No. 00/36).
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This paper reports on an experiment designed to test whether pairs of individuals are able to exploit efficiency gains in the sharing of a risky financial prospect. Observations from a previous experiment had suggested a general rejection of efficiency in favour of ex post equality. The present experiment explores some possible explanations for this. The results indicate that fairness is not a significant consideration, but rather that having to choose between prospects diverts partners from allocating the chosen prospect efficiently.
|Item Type:||Report / Paper (Discussion Paper)|
|Research documents and activity classification:||Working Papers > Refereed Working Papers / of international relevance|
|Divisions:||Department of Business and Management|
|Additional Information:||The definitive version of this paper has been published in "Journal of Risk and Uncertainty", Vol. 28 (1), Pages 23-38, January 2004.|
|Uncontrolled Keywords:||Risk-sharing; experiments; bargaining; fairness.|
|MIUR Scientific Area:||Area 13 - Economics and Statistics > SECS-P/01 Political Economy|
|Deposited by:||Maria Teresa Nistico|
|Date Deposited:||06 Dec 2010 09:06|
|Last Modified:||21 Apr 2015 23:13|
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