Inequality and Risk-Taking. (21st July 2015)

• Record Type: Journal Article
• Authors: Mishra, Sandeep; Hing, Leanne S. Son; Lalumière, Martin L.
• Is Part Of: Evolutionary psychology. Volume 13:Number 3(2015)
• Publication Date: 2015-07-21
• Subjects: inequality -- risk-taking -- risk-sensitivity theory -- judgment and decision making; Evolutionary psychology -- Periodicals; Human evolution -- Psychological aspects -- Periodicals; Biological Evolution; Psychology; Periodicals; 155.705
• DOI: 10.1177/1474704915596295
• Languages: English
• ISSNs: 1474-7049

Abstract

Inequality has been associated with risk-taking at the societal level. However, this relationship has not been directly investigated at the individual level. Risk-sensitivity theory predicts that decision makers should increase risk-taking in situations of disparity between one's present state and desired state. Economic inequality creates such a disparity. In two experiments, we examined whether imposed economic inequality affects risk-taking. In Experiment 1, we examined whether victims of inequality engaged in greater risk-taking compared to beneficiaries of inequality and those not experiencing inequality. In Experiment 2, we examined whether ameliorating inequality for victims reduced risk-taking. In both experiments, victims of inequality engaged in greater risk-taking compared to beneficiaries of inequality and those not experiencing inequality. Among victims, amelioration of inequality contributed to decreased risk-taking. These findings provide further evidence in support of risk-sensitivity theory and suggest that reductions in economic inequality may lead to lower risk-taking.