Scandinavian Working Papers in Economics

Discussion Paper Series in Economics,
Norwegian School of Economics, Department of Economics

No 13/2025: Risk taking on behalf of others: Does the timing of uncertainty revelation matter?

Alexander W. Cappelen (), Erik Ø. Sørensen (), Bertil Tungodden () and Xiaogeng Xu ()
Additional contact information
Alexander W. Cappelen: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Erik Ø. Sørensen: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Bertil Tungodden: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Xiaogeng Xu: Dept. of Finance and Economics, Hanken School of Economics, Postal: Hanken School of Economics, Department of Finance and Economics, Arkadiankatu 7, 00101 Helsinki, Finland

Abstract: Using a large, probability-based online panel representative of the general population in Norway, we examine how varying delays in the revelation of uncertainty affect risk-taking on behalf of others. We find a precisely estimated null effect of revelation delay on the average proportion choosing a lottery over a safe alternative. A hierarchical Bayesian model of rank-dependent utility also reveals no differences in underlying decision processes across conditions. However, we do observe a paternalistic tendency: participants place greater weight on their own risk preferences than on those they believe others to hold.

Keywords: Risk-taking; decision-making; uncertainty

JEL-codes: C91; D63; D81

Language: English

54 pages, May 23, 2025

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