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Experimental evidence on personality traits and preferences
Author(s) -
EngleWarnick Jim,
Laszlo Sonia,
Sayour Nagham
Publication year - 2020
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/boer.12223
Subject(s) - lottery , agreeableness , ambiguity , big five personality traits , personality , psychology , social psychology , affect (linguistics) , ambiguity aversion , risk aversion (psychology) , expected utility hypothesis , extraversion and introversion , economics , microeconomics , communication , computer science , mathematical economics , programming language
Using an experiment, we test the relation between personality traits and revealed risk and ambiguity preferences, and we consider the effects of personality traits prevalence in a group on the decision making of each group member. In the experiment, subjects reveal their risk and ambiguity preferences through lottery choices. They then participate in an unstructured group chat. Afterwards, they are given the chance to revise their initial lottery choices. Results show that personality traits affect ambiguity but not risk preferences before the chat. Specifically, agreeableness is negatively related to ambiguity aversion. We also show that the probability of changing decisions after the chat is affected by the individual's personality traits but not by the traits of the other group members. The latter only affects the direction and the degree of the change.