Abstract

The aim of this study is to investigate the extent to which individual risk preferences are contextually dependent. The theory deveoped in this paper extends the way traditional economists have thought about risk behavior to incorporate the way other social scientists have thought about risk behavior. Specifically, the hypothesis being tested in the paper can be stated as: Individuals behave differently towards risks when in a social atmosphere than when they are in isolation. This hypothesis was tested using an experimental design inspired from previous literature in the field. Using regression analysis it was found that there is no statistical significance that individuals behave differently towards risk when in a social atmosphere than when they are in isolation.

Advisor

Mellizo, Philip

Department

Economics

Disciplines

Economics

Publication Date

2012

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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© Copyright 2012 Adam Heurich