Risk-taking for others: An experiment on the role of moral discussion

Abstract

We study the effect of moral discussion when risk-taking choices entail a negative externality on others. In our experiment, the decision-maker chooses between two risky gambles, one of which entails a better outcome for himself but higher risk for the receiver. In the Moral Discussion treatments – before making a choice – decision-makers discuss the consequences of their choice within a group of peers. We also implement a Reflection treatment, where participants have to think before making their choice, and a baseline with an immediate decision. Our results show that, after a moral discussion, decision-makers choose more often the less risky gamble compared to the Reflection. Moreover, this effect does not depend on the mode of interactions among participants. Through a mediation analysis, we also show that this effect mainly unfolds through a significant modification of the beliefs about the behaviour of their peers.