Does nurture matter: theory and experimental investigation on the effect of working environment on risk and time preferences

Nguyen, Quang (2011) Does nurture matter: theory and experimental investigation on the effect of working environment on risk and time preferences. Journal of Risk and Uncertainty . ISSN 0895-5646 (Accepted/In press)

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Abstract

Building upon the reference dependent preferences model, we develop a theoretical framework to examine the relationship between environment and preferences. To verify the model’s prediction, we use a combined artefactual field experiment and household survey data in Vietnam to investigate whether involvement is risky and has long-run targeted benefits, thereby causing fishermen to exhibit different risk and time preferences than workers in other occupations. Using a structural model approach, we integrate prospect theory and hyperbolic time discounting into a single framework, to simultaneously estimate and correlate the parameters of both risk and time preferences with other demographic variables. The key finding that fishermen are found to be less risk-averse and more patient than others asserts the theoretical prediction about the influence of the working environment on preferences.

Item Type: Article
Research Areas: A. > Business School > Economics
A. > Business School > International Management and Innovation
Item ID: 16023
Notes on copyright: Access to full text restricted pending copyright check.
Depositing User: Quang Nguyen
Date Deposited: 14 May 2015 12:03
Last Modified: 30 May 2019 18:28
URI: https://eprints.mdx.ac.uk/id/eprint/16023

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