Template-Type: ReDIF-Paper 1.0
Title: Social Reference Points and Risk Taking
Author-Name: Frederik Schwerter
Author-Email: frederikschwerter@uni-bonn.de
Classification-JEL: C91, D03, D81
Keywords: Social Comparisons, Social Loss Aversion, Reference-Dependent Preferences, Lab Experiments, Relative Income Concerns
Abstract: 	This study test whether social reference points impact individual risk taking. In a laboratory experiment,
decision makers observe the earnings of a peer subject before making a risky choice. We exogenously manipulate the peer earnings
across two treatments. We find a signicant treatment effect on risk taking: decision makers vary their risk taking in order to surpass or stay ahead
of their peer. Our findings are consistens with a social-comparison-based, reference-dependent preference model that formalizes relative concerns 
via social loss aversion. Additionally, we relate our findings to the impact of private reference points on risk taking. 

Note: 
Length: 23
Creation-Date: 2013-11
Revision-Date: 2014-01
File-URL: http://www.bgse.uni-bonn.de/bonn-econ-papers-1/archive/2013/bgse11_2013
File-Format: application/pdf
Handle: RePEc:bon:bonedp:bgse11_2013