Social Sciences
4 years ago

Social lotteries reveal preference for fairness over efficiency in risk-taking

Jena Economic Research Papers
Social Preferences under Risk: Ex-Post Fairness vs. Efficiency
Alexia Gaudeul

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Social lotteries with others affect how people make risky decisions. People care about fairness and efficiency when choosing between safe and risky options. Seeing total payoffs can change how people view risk. Some people still dislike unequal payoffs, preferring risk over unfair outcomes. Different people react differently to social situations when making decisions.