Dopamine and risk choices in different domains: Findings among serious tournament bridge players

We explore how risk-taking in the card game contract bridge, and in a financial gamble, correlate with variation in the dopamine receptor D4 gene (DRD4) among serious tournament bridge players. In bridge risk-taking, we find significant interactions between genetic predisposition and skill. Among men with the 7-repeat allele of DRD4, namely 7R + men, those with more bridge skill take more good risks and fewer bad risks, while the opposite is found for less-expert 7R + men. Conversely, skill does not predict risk-taking among men without the 7R + allele. Consistent with some prior studies, we also find that 7R + men take more risk in the financial gamble. We find no relationship between 7R + and either risk measure among our female subjects. Our results suggest that the dopamine system plays an important role in individual differences in risk-taking among men, and is the first to distinguish between advantageous and disadvantageous risk-taking.     

Gender, Financial Risk, and Probability Weights

Women are commonly stereotyped as more risk averse than men in financial decision making. In this paper we examine whether this stereotype reflects gender differences in actual risk-taking behavior by means of a laboratory experiment with monetary incentives. Gender differences in risk taking may be due to differences in valuations of outcomes or in probability weights. The results of our experiment indicate that value functions do not differ significantly between men and women. Men and women differ in their probability weighting schemes, however. In general, women tend to be less sensitive to probability changes. They also tend to underestimate large probabilities of gains more strongly than do men. This effect is particularly pronounced when the decisions are framed in investment terms. As a result, women appear to be more risk averse than men in specific circumstances.     

Common genetic effects on risk-taking preferences and choices

Although prior research has shown that risk-taking preferences and choices are correlated across many domains, there is a dearth of research investigating whether these correlations are primarily the result of genetic or environmental factors. We examine the extent to which common genetic factors account for the association between general risk-taking preferences and domain-specific risk-taking preferences, and between general risk-taking preferences and risk taking choices in financial investments, stock market participation and business formation. Using data from 1898 monozygotic (MZ) and 1344 same-sex dizygotic (DZ) twins, we find that general risk-taking shares a common genetic component with domain-specific risk-taking preferences and risk-taking choices.

     

The effects of gender role stereotypes on political attitudes

Public attitudes toward women may be understood in terms of two dimensions: inferiority and indifference. Some people (both men and women) believe that women are inferior to men, whereas others believe that the sexes are merely different. Factor analysis of the NORC General Social Survey shows that the inferiority stereotype explains political attitudes better than the difference stereotype.     

The Effectiveness of Assigned Goals in Complex Financial Decision Making and the Importance of Gender

Evidence suggests that men are more confident and less risk averse in financial decision making. Researchers did not address how men and women respond differently to goals in financial decision situations, however. In the present study, men set more challenging personal goals and risked more resources than women in a complex financial decision task. Men did not report higher self-efficacy versus women. As expected, gender interacted with assigned goals to predict self-efficacy, risk behavior, and personal goals. Results concur with recent financial decision research that suggests men and women differ in their use of externally-provided information such as assigned goals. Suggestions for future research are offered and limitations are discussed.     

Empirical Evidence of the Effects of Marriage on Male and Female Attendance at Sports and Arts*

Objectives. This article provides an examination of how men and women spend their recreational attendance time and how their behavior differs when they are single and married. The battle of the sexes model and the theory of artistic human capital acquisition from one's spouse both suggest that married individuals will have different patterns of attendance than singles. Methods. Using data from the Performing Arts Research Coalition, we estimate a number of models to examine the differences between male and female attendance at art, professional sports, and popular culture events for those single and married. Results. We find that single males prefer sports, while single females prefer the arts. As predicted by the battle of the sexes model, men are more likely and women less likely to attend art events after marriage. This increase in male attendance is also predicted by human capital models of attendance that argue that the choice of art events is based on acquired tastes that can be influenced by the human capital of one's spouse. The battle of the sexes model, however, also predicts a decline in male and an increase in female attendance at professional sports. We find a small increase in female, but also an increase in male, attendance. Conclusions. The behavior of married and single males and females tends to correspond to the predictions made by the battle of the sexes and human capital models of attendance.     

Determinants of risk-taking: Behavioral and economic views

The concept of risk-taking is examined from various perspectives: economic, decision theoretic, and psychological. Multiple factors are discussed as complicating the extraction of any presumed risk-taking propensity from a person's real-world behavior.Problem structuring, beliefs, andvalues (defined here as riskless as opposed to risky utility) may of course underlie differences in risk behavior. In addition,context andprocess factors can induce variance in risk-bearing. Also,portfolio effects (including cross-sectional, multiattribute, and longitudinal) may greatly complicate the measurement of risk-taking propensity. Lastly, the presence of incompletemarkets (via which risks can be partially diversified and traded) may further mask the link between intrinsic and observed risk-taking. This article examines each of these measurement obstacles and sources of variance.     

Does gender ideology explain differences between countries regarding the involvement of women and of men in paid and unpaid work?

Women spend more time doing household work than men, and men spend more time working at paying jobs outside the home than women. But studies also show that there are major differences between countries regarding the degree to which women and men involve themselves in different kinds of labour activity. The main aim of the article is to analyse the significance of gender ideology when studying differences between countries regarding the involvement of women and men in paid and unpaid work. The analysis is based on national random samples from ten OECD countries that were collected within the framework of ISSP 1994. The conclusions are: (a) gender ideology has an impact in all the studied countries on the degree to which women and men involve and engage themselves in labour and (b) gender ideology partially explains the differences between countries regarding women's and men's involvement in paid and unpaid work.     

Sex differences in single vehicle fatal crashes: a research note

Single vehicle traffic fatality data spanning the years 1982–1991 appear to support the convergence hypothesis: that women are becoming more like men in their behaviors. However, diminishing differences between male and female fatalities do not support a risk-taking model of convergence. Male drivers killed in single vehicle crashes have reduced risk-taking as measured by driving at night, driving on weekends, prior traffic convictions and crashes, and drunken driving. Female single vehicle fatalities have not risen because of increased risk-taking; rather, a greater proportion of women are now licensed to drive and they are driving more miles per year, which supports an exposure model over a risk-taking one.     

Do bettors prefer long shots because they are risk-lovers,or are they just overconfident?

This study examines whether bettors' risk preferences or overconfidence in choosing winners better explains their well documented preference for low-probability wagers. Although previous studies using racetrack data often suggest that risk-loving behavior explains long-shot preference, such data cannot distinguish between the alternative explanations. We use football betting data to make the comparison and find that overconfidence more closely fits the data. This result complements evidence of overconfidence from behavioral studies as well as stock-market models of overconfident noise traders.     

The Value of a Statistical Life and the Coefficient of Relative Risk Aversion

Individuals’ risk preferences are estimated and employed in a variety of settings, notably including choices in financial, labor, and product markets. Recent work, especially in financial economics, provides estimates of individuals’ coefficients of relative risk aversion (R’s) in excess of one, and often significantly higher. However, it can be shown that high R’s imply equally high values for the income elasticity of the value of a statistical life. Yet estimates of this elasticity, derived from labor and product markets, are in the range of 0.5 to 0.6. Furthermore, it turns out that even an R below one is difficult to reconcile with these elasticity estimates. Thus, there appears to be an important (additional) anomaly involving individuals’ risk-taking behavior in different market settings.JEL Classification: D80, G11, G12, I10, J17     

Predicted risk perception and risk-taking behavior: The case of impaired driving

Research suggests an association between risk perception and risk-taking behavior in a variety of contexts. There is empirical evidence that perceived risk is generally biased and that perception of risk influences behavior. Perception of risk can be endogenous. It is therefore more appropriate to instrument risk perception. This article studies the perception of the risks associated with impaired driving and the relation between predicted risk perception and driving behavior. We survey a sample of license-holders, half of whom are drivers with a past conviction for impaired driving, the other half or control group without such conviction. Predicted perceptual biases are shown to influence actual driving behavior.

Twice chosen: Spouse matching and earnings among women in first and second unions

This study examines spouse matching for females in second order marriages or cohabitating relationships. It is based on detailed data from longitudinal Swedish population registers. We follow women who marry, divorce, and subsequently remarry compared to women who marry and remain married over the course of the study interval. The earnings of both groups, along with the earnings of their respective husbands, are modeled on the basis of data in the year prior to their marriages. From the regressions we obtain spouse-to-be pairs of earnings residuals and measure the correlation between spouses within each marital regime. Overall, we find significant positive residual correlations for both sample partitions. The correlation is smaller for the first of two marriages for women who divorce than for women who marry and remain married. For the second of successive marriages, however, the correlation is larger than that for women who marry but once. Also for twice-married women, we find evidence of matching between successive husbands. Women who marry men with unmeasured positive earnings capacities, in the event of divorce, tend to select and match in a similar fashion the second time around.     

Who REALLY Wants to be a Millionaire? Gender Differences in Game Show Contestant Behavior Under Risk*

Objective. On the popular game show Who Wants to be a Millionaire men appear to average higher winnings than women. This article investigates potential reasons, including different uses of information sources (lifelines) and different perceptions of risk. Method. We analyzed the decisions and resultant winnings of 164 contestants (95 men and 69 women) over 42 episodes of the show. Results. Gender‐based tests of Kahneman and Tversky's prospect theory demonstrated evidence of gender differences in the certainty effect and suggested the counterintuitive conclusion that men are rewarded for acting slightly more cautiously than do women. Conclusions. These gender differences may be owing to self‐selection of contestants, particularly for women, and to different goals: whereas men play to maximize their winnings, women may be less concerned with profit than with the experience as a whole. These findings suggest that examination of gender‐related behavior in other risky, high‐profile contexts may be worthwhile.     

Gender and the credit rationing of small businesses

Rapid small business ownership growth rates among women have motivated research on issues related to gender and small business performance. The importance of credit access for the success of small businesses, as well as evidence that women have less access to credit than male business owners, has led researchers to explore the reasons for this. In this paper, we estimate a model of credit rationing by gender of the business owner. Our results are consistent with previous studies that find higher loan denial rates and lower loan application rates among women compared with men. Testing the robustness of the results we find that women seem to be rationing themselves in the credit market rather than being discriminated against by banks. Reasons for this self-rationing behavior are an important topic for further research.     

Individual laboratory-measured discount rates predict field behavior

We estimate discount rates of 555 subjects using a laboratory task and find that these individual discount rates predict inter-individual variation in field behaviors (e.g., exercise, BMI, smoking). The correlation between the discount rate and each field behavior is small: none exceeds 0.28 and many are near 0. However, the discount rate has at least as much predictive power as any variable in our dataset (e.g., sex, age, education). The correlation between the discount rate and field behavior rises when field behaviors are aggregated: these correlations range from 0.09–0.38. We present a model that explains why specific intertemporal choice behaviors are only weakly correlated with discount rates, even though discount rates robustly predict aggregates of intertemporal decisions.     

Running Against a Woman: Do Female Opponents Shape Male Candidate Behaviors?*

Objective. The male‐dominated nature of U.S. politics still means that the vast majority of women who run for office face a male opponent. As a result, one dramatic change in U.S. politics—the increase in women candidates—may contribute to another change, that being the experience of men who run for office. The research reported here begins to consider how running against a woman might have influenced the behavior of male candidates for Congress in 2002 and 2006. Past research suggests that men who run against women feel that they need to take steps to appeal to women voters by giving attention to issues of concern to women in their campaigns. Methods. To test the hypothesis that men will alter their attention to women's issues in the face of a woman candidate, I use campaign websites to examine the issue priorities of men who ran against women and compare them to a sample of men who ran against other men. Results. Counter to expectations, I find no evidence that men “play” to women voters through their attention to women's issues and instead demonstrate the relatively limited visibility that men give to these issues when they run against a woman. Conclusions. Running against a woman may have some limited impact on male candidate behaviors, but does not appear to be a significant influence.     

Understanding the Financial Knowledge Gap: A New Dimension of Inequality in Later Life

ABSTRACT

To understand individuals’ financial behaviors, it is important to understand the financial knowledge gap – the distance between one’s objective and subjective financial knowledge. Overestimating one’s financial knowledge can lead to risky financial behaviors. To date, limited empirical work has examined how financial knowledge gap varies across age groups. We analyze the size and nature of the financial knowledge gap and its variation across age groups. Using nationally representative data, we find robust evidence that older adults overestimate their financial knowledge. Social workers can assess the financial knowledge gap and educate their clients to protect from financial fraud, exploitation, and abuse.     

Heterogeneous and Correlated Risk Preferences in Commercial Fishermen: <Emphasis Type="Italic">The Perfect Storm</Emphasis> Dilemma

Commercial fishing involves both physical and financial risks. This combination questions whether fishermen are inherently risk-loving, whether physical and financial risk preferences are correlated, and how much preferences vary across fishermen. This paper addresses these questions with a panel data set of daily participation decisions in the California sea urchin dive fishery. Weather buoy data and the prevalence of great white sharks at a particular fishing site proxy for physical risk. Overall, urchin fishermen are not risk-loving on average, risk preferences are heterogeneous, and there is some evidence that risk preferences are positively correlated across physical and financial domains.JEL Classification: Q22, D81