On the determinants of giving under risk

- We investigate the role of risk preferences in prosocial behavior.
- We use separate measures for risk attitudes over own and others' payoff.
- Risk aversion and prosocial behavior under certainty are correlated.
- Own risk aversion leads to a strong reduction in giving when own payoff becomes risky.
- Giving under risk declines when the receiver is not (believed to be) risk-averse.

By means of a laboratory experiment we investigate the role of risk preferences for prosocial behavior. Modifying the way the decision-maker or the recipient are exposed to risk, our design allows to identify how risk preferences impact giving-decisions. By measuring the decision-makers' risk preferences regarding both their own as well as the recipients' payoff, we generate new insights into how social preference theories may extend to risky situations.