Hj Holm
Vice Dean Research Education, Professor
Risking Other People's Money : Experimental Evidence on the Role of Incentives and Personality Traits
Author
Summary, in English
Decision makers often face incentives to increase risk‐taking on behalf of others through bonus contracts and relative performance contracts. We conduct an experimental study of risk‐taking on behalf of others using a large heterogeneous sample and find that people respond to such incentives without much apparent concern for stakeholders. Responses are heterogeneous and mitigated by personality traits. The findings suggest that lack of concern for others’ risk exposure hardly requires “financial psychopaths” in order to flourish, but is diminished by social concerns.
Department/s
- Department of Economics
Publishing year
2020-04
Language
English
Pages
648-674
Publication/Series
Scandinavian Journal of Economics
Volume
122
Issue
2
Document type
Journal article
Publisher
Wiley-Blackwell
Topic
- Economics
Keywords
- Competition
- hedging
- incentives
- risk-taking
- social preferences
Status
Published
ISBN/ISSN/Other
- ISSN: 1467-9442