Do Risk Preferences Change During COVID-19? Comparisons between Pre and On-Pandemic Parallel Experiments

Zhang, Peilu; Palma, Marco A.

doi:10.2139/ssrn.3849536

Cited by 6 publications

(9 citation statements)

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“…Aksoy et al (2021) find that risk seeking increased in the risk project (safe versus risky investment) and willingness to take risk item while it decreased in the risk urns (multiple price list lottery versus sure amount) after the start of the pandemic as compared to the pre-pandemic situation. Zhang and Palma (2021) find that post emergency risk aversion in Balloon Analogue Risk Task (BART) increased while in gamble choices remained unchanged as compared to the pre-emergency setting. Alsharawy et al (2021) find that the fear of Covid-19 reduces risk tolerance while local death rate has insignificant influence on risk-taking.…”

Section: Risk Preferencesmentioning

confidence: 88%

A selected literature review of the effect of Covid-19 on preferences

Umer

2023

J. Econ. Sci. Assoc.

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This article surveys the rapidly growing literature that examined the influence of Covid-19 on preferences. Based on 33 studies, the article examines how the pandemic impacted altruism, cooperation, trust, inequity aversion, risk-taking, and patience/time discounting. Even though the survey suggests the effect of the pandemic on preferences is heterogeneous, some noticeable patterns can be observed in the literature. First, in the case of incentivized preference elicitation, there is weak evidence that the pandemic positively influenced altruism and had no significant impact on time preferences or patience. Second, many studies that used balanced panel data and incentivized preference elicitation mechanisms do not find a significant effect of the pandemic on preferences. Last, studies that used unincentivized methods to elicit preferences show relatively higher variability in results when compared to the studies that used incentivized methods for preference elicitation. The organized synthesis and several noticeable patterns can help future research focusing on preference stability during Covid-19 and other unfavorable events. Supplementary Information The online version contains supplementary material available at 10.1007/s40881-023-00127-5.

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Section: Risk Preferencesmentioning

confidence: 88%

A selected literature review of the effect of Covid-19 on preferences

Umer

2023

J. Econ. Sci. Assoc.

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“…7 Adema et al ( 2022) elicit risk preferences with a lottery choice and find that participants were less risk averse after the start of the pandemic. Zhang and Palma (2021) elicit risk preferences with a lottery choice task (Eckel and Grossman, 2002) and the balloon analogue risk task (Lejuez et al, 2002). They find no changes in risk aversion when measured with the lottery choice task, but do observe that an increase in risk aversion when measured with the balloon analogue risk task.…”

Section: Introductionmentioning

confidence: 93%

“…A number of studies report on the effect of the COVID-19 crisis on preferences but the existing findings are mixed and difficult to compare, due to differences in samples and preferences elicitation methods (Umer, 2023 provides an extensive review). 3 Concerning risk preferences, it has been found that people became more risk averse (Li et al, 2020), less risk averse (Adema et al, 2022;Gassmann et al, 2022;Shachat et al, 2021), did not change (Angrisani et al, 2020;Drichoutis and Nayga, 2022;Harrison et al, 2022;Lohmann et al, 2023), or that the results depend on the elicitation method (Aksoy et al, 2021;Zhang and Palma, 2021). Ambiguity aversion has been observed to increase (Shachat et al, 2021) and decrease (Gassmann et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

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The Robustness of Preferences During a Crisis: The Case of COVID-19

Bokern,

Linde,

Riedl

et al. 2023

SSRN Journal

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“…3 Concerning risk preferences, people were found to become more risk averse (Li et al, 2020), less risk averse (Adema et al, 2022;Gassmann et al, 2022;Shachat et al, 2021), or were not affected (Angrisani et al, 2020;Drichoutis and Nayga, 2022;Harrison et al, 2022;Lohmann et al, 2023). Additionally, some studies found varying results in the same sample, depending on the elicitation method (Aksoy et al, 2021;Zhang and Palma, 2021). Ambiguity aversion was found to increase (Shachat et al, 2021) and decrease (Gassmann et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

Measuring is knowing?

Bokern

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The years of my PhD have been an invaluable and for the most part enjoyable experience. I enjoyed the freedom that comes with a PhD, a luxury hard to match in the future. I enjoyed teaching and the thought that at least some students picked up a thing or two from my classes. I enjoyed doing research, cleaning and analyzing data, and presenting my work. But most of all I enjoyed meeting people, be it at work, at conferences, at summer schools, or during my research visit. It would not have been the same without your inspiration, support, and necessary distractions.Let me first thank my supervisors Arno Riedl, Hans Schmeets, Peter Werner, and Jona Linde. If it weren't for you and the project you hired me for, I probably would not have done a PhD. Thanks for believing in me back then and throughout the project. I learned a lot from each of you and am deeply grateful for your support and time (most of our meetings ran late). Arno, thanks for encouraging me to meet people, attend conferences and present my work. I don't think I realized at the start how invaluable these experiences are. Thanks also for keeping my spirits up with zucchini seedlings, Austrian cookies and chocolate, and dinner at your place. Hans, thanks for always providing a different perspective as my only non-econ supervisor; it helped to see the bigger picture. Thanks also for the beers and pizza in your beautiful garden. It is a great place to discuss future plans with your supervisors. Peter, thanks for always having your (virtual) door open to quickly discuss research, it really helped when I was stuck on something. You also impressed me with your ability to quickly write things up and yet your meticulousness when it comes to final work -even after multiple drafts of my chapters, you still managed to find mistakes. Jona, thanks for having borne the responsibility to make sure things moved forward. Thanks also for the nice dinner after helping you out with some oral exams. I am sure we will stay in touch.Next to my supervisors, I owe thanks to several others involved in the completion of this thesis. Seun, we were largely in the same boat. Thanks for sharing some of the same struggles. Thanks to Steffen Altmann, Thomas Dohmen, Alwin Oerlemans, Maarten Post, and Jeroen van Velzen for being part of the Advisory Committee and providing valuable comments and suggestions. Thanks to Lisa Br üggen, Thomas Dohmen, Rogier Potter van Loon, and Charles Sprenger for reading and assessing my thesis.Hoofdstuk 3 en 4 onderzoeken respectievelijk de stabiliteit van voorkeuren na levensgebeurtenissen en tijdens de COVID-19 crisis. Stabiele voorkeuren worden vaak impliciet verondersteld, maar het is belangrijk dat deze veronderstelling empirisch wordt gevalideerd. Hoofdstuk 3 onderzoekt het effect van een (recent) huwelijk, scheiding en ouderschap op risico-, tijds-en sociale voorkeuren. De bevindingen tonen aan dat er slechts enkele kortdurende effecten zijn. Belangrijk is echter dat de resultaten van de revealed en stated methoden grotendeels niet overeenkomen. Ho...

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Do Risk Preferences Change During COVID-19? Comparisons between Pre and On-Pandemic Parallel Experiments

Cited by 6 publications

References 0 publications

A selected literature review of the effect of Covid-19 on preferences

A selected literature review of the effect of Covid-19 on preferences

The Robustness of Preferences During a Crisis: The Case of COVID-19

Measuring is knowing?

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