Young adults gamble less when observed by peers
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Open Access
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ArticleAbstract
The impact of peer presence on the choices made by young people is yet to be fully understood. Using an incentive compatible experiment, we investigate whether: (1) young people’s willingness to accept known and unknown risks varies when in the presence of an observer of the similar age compared to in private and (2) whether these preferences are affected by having observed peer’s decisions. We find that young adults do not gamble more when observed by peers, rather they become more ambiguity averse.The impact of peer presence on the choices made by young people is yet to be fully understood. Using an incentive compatible experiment, we investigate whether: (1) young people’s willingness to accept known and unknown risks varies when in the presence of an observer of the similar age compared to in private and (2) whether these preferences are affected by having observed peer’s decisions. We find that young adults do not gamble more when observed by peers, rather they become more ambiguity averse.
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Date
2018Source title
Journal of Economic PsychologyVolume
68Publisher
ElsevierFunding information
ARC CE140100027Licence
Creative Commons Attribution-NonCommercial-NoDerivatives 4.0Rights statement
© This manuscript version is made available under the CC-BY-NC-ND 4.0 license https://creativecommons.org/licenses/by-nc-nd/4.0/Faculty/School
Faculty of Arts and Social Sciences, School of EconomicsShare