Individual and couple decision behavior under risk: evidence on the dynamics of power balance |
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Authors: | André de Palma Nathalie Picard Anthony Ziegelmeyer |
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Institution: | 1.Ecole Normale Supérieure de Cachan,Cachan,France;2.Institut Universitaire de France,Paris,France;3.Ecole Polytechnique,Palaiseau,France;4.THEMA,University of Cergy-Pontoise,Cergy-Pontoise Cedex,France;5.INED,Paris,France;6.Strategic Interaction Group,Max Planck Institute of Economics,Jena,Germany;7.Faculty of Economics and Management,Technical University of Berlin,Berlin,Germany |
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Abstract: | This article reports results of an experiment designed to analyze the link between risky decisions made by couples and risky
decisions made separately by each spouse. We estimate both the spouses and the couples’ degrees of risk aversion, we assess
how the risk preferences of the two spouses aggregate when they make risky decisions, and we shed light on the dynamics of
the decision process that takes place when couples make risky decisions. We find that, far from being fixed, the balance of
power within the household is malleable. In most couples, men have, initially, more decision-making power than women but women
who ultimately implement the joint decisions gain more and more power over the course of decision making. |
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