This study analyses the relationship between the willingness to take risk (WTR) of a sentimental couple and its individual components. Using a survey-based measure collected in a lab experiment with 126 couples, we estimate a joint model for explaining female, male, and couple WTR. We control for socio-demographic characteristics and personality traits in the individual risk specifications and for the length of the relationship in the joint risk specification. We find that individual WTR is related to personality more than to socio-demographic variables. Couple WTR is equally determined by the individual WTR of each partner, once endogeneity arising from unobservable common factors is considered. This implies that risk-averse (risk-tolerant) individuals appear to be willing to take more (less) risk when behaving with the partner than he/she would like when behaving individually.
Couple and Individual Willingness to Take Risks
Alessandro Bucciol
2023-01-01
Abstract
This study analyses the relationship between the willingness to take risk (WTR) of a sentimental couple and its individual components. Using a survey-based measure collected in a lab experiment with 126 couples, we estimate a joint model for explaining female, male, and couple WTR. We control for socio-demographic characteristics and personality traits in the individual risk specifications and for the length of the relationship in the joint risk specification. We find that individual WTR is related to personality more than to socio-demographic variables. Couple WTR is equally determined by the individual WTR of each partner, once endogeneity arising from unobservable common factors is considered. This implies that risk-averse (risk-tolerant) individuals appear to be willing to take more (less) risk when behaving with the partner than he/she would like when behaving individually.
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