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 Nisticò
Date Deposited: 06 Dec 2010 09:06
Last Modified: 21 Apr 2015 23:13
URI: http://eprints.luiss.it/id/eprint/777


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