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In Group Vs. Out Group Dynamics And Risk Attitudes by Ludovica Giuffrè

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1In-group Vs. Out-group Dynamics And Risk Attitudes

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This study investigates how risk preferences in life-or-death decisions are influenced by group membership (in-group vs. out-group) and framing effects (positive vs. negative). Specifically, I examine whether individuals make different choices when the lives at stake are those of people in their own country (domestic/in-group) versus those in another country (foreign/out-group), whether the classic framing effect demonstrated by Tversky and Kahneman (1981) replicates across both contexts, and wether there is an interaction effect between the two group membership and framing. The study employs a 2 × 2 between-subjects factorial design in which participants are randomly assigned to one of four conditions (domestic or foreign scenario × positive or negative framing) Participants are presented with a scenario involving a disease outbreak that could lead to the death of 600 people. They are presented with two options: the first will result in the survival of 200 people and the death of 400, the second has a 1/3 chance that everyone will survive and a 2/3 chance that everyone will die. The scenario is framed positively (in terms of lives saved) or negatively (in terms of lives lost), and the affected population is described as either from the participant's own country or from a foreign country. The primary hypothesis is that people will exhibit more risk averse attitudes towards in-group members than out-group. I also expect to find a framing effect, with people being more risk averse when presented with the positive framing and I also test for an interaction effect. I also collect data on gender, country of origin and self-reported levels of risk aversion for exploratory analysis.

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