Unité mixte de recherche 7235

How Do We Apply Self-Protection to Others?

Intervenant : Vincent Lenglin (Université Catholique de Lille)

Co écrit avec Fabrice Le Lec et Rémi Suchon

Abstract: We explore how individuals apply self-protection strategies to both themselves and charitable organizations, focusing on their willingness to pay to reduce the probability of the worst outcome by 10 percentage points across five different probability levels: 0.1, 0.2, 0.5, 0.8, and 1.0. This research, building on Le Lec et al.’s working paper and utilizing Exley’s 2016 method, involves four experimental scenarios. Two of these scenarios measure the personal cost individuals are willing to incur to decrease these probabilities by 10 points, either for themselves or for a charity. The other two scenarios investigate the costs individuals are willing to impose on a charity to reduce these probabilities by 10 points, affecting either the charity itself or the individuals. Our very preliminary findings reveal a tendency for individuals to assign higher costs to charities, regardless of whether the risk reduction benefits themselves or the charity. Additionally, we observe a significant impact of the initial probability of experiencing the worst outcome on the willingness to pay, suggesting that the probability weighting function plays a crucial role. However, this propensity to pay or to impose costs appears to be only marginally influenced by the experimental conditions.

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