Does flood experience modify risk preferences? Evidence from an artefactual field experiment in Vietnam - Archive ouverte HAL
Article Dans Une Revue Geneva Risk and Insurance Review Année : 2020

Does flood experience modify risk preferences? Evidence from an artefactual field experiment in Vietnam

Résumé

We conducted an artefactual field experiment in Vietnam to investigate whether and how experiencing a natural disaster affects individual attitudes toward risks. Using experimental and real household data, we show that households in villages affected by a flood in recent years exhibit more risk aversion, compared with individuals living in similar but unaffected villages. Interestingly, this result holds for the loss domain, but not the gain domain. In line with Prospect Theory, Vietnamese households distort probabilities. The distortion is related to aid received and social networks participation, but is unrelated to flood experience.
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Dates et versions

hal-03050685 , version 1 (18-01-2021)

Identifiants

Citer

Arnaud Reynaud, Cécile Aubert. Does flood experience modify risk preferences? Evidence from an artefactual field experiment in Vietnam. Geneva Risk and Insurance Review, 2020, 45 (1), pp.36-74. ⟨10.1057/s10713-019-00044-w⟩. ⟨hal-03050685⟩
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