Role Taking Under Financial Risk Decision Making

Authors

1 Faculty of Administration sciences and Economics, University of Isfahan, Isfahan, Iran.

2 Department of Economics, The University of New Mexico, New Mexico, United States.

Abstract

This paper explores people’s behavior when they are facing financial risks. Through the setting of an economics experiment, people’s willingness to bear financial risks and their tendency to impose risks on others are investigated. The experiment result shows that most people are risk-neutral or risk-averse when making decision under financial environment, and their tendency to impose risks on others is directly related to their own willingness to bear risks.