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Economic behavior under the influence of alcohol: an experiment on time preferences, risk-taking, and altruism.

Corazzini L, Filippin A, Vanin P - PLoS ONE (2015)

Bottom Line: We report results from an incentivized laboratory experiment undertaken with the purpose of providing controlled evidence on the causal effects of alcohol consumption on risk-taking, time preferences and altruism.All subjects participated in a series of economic tasks administered in the same sequence across treatments.After controlling for both the willingness to pay for an object and the potential misperception of probabilities as elicited in the experiment, we detect no effect of alcohol in depleting subjects' risk tolerance.

View Article: PubMed Central - PubMed

Affiliation: Department of Law Science and History of Institutions, University of Messina, Messina, Italy, and ISLA, Bocconi University, Milan, Italy.

ABSTRACT
We report results from an incentivized laboratory experiment undertaken with the purpose of providing controlled evidence on the causal effects of alcohol consumption on risk-taking, time preferences and altruism. Our design disentangles the pharmacological effects of alcohol intoxication from those mediated by expectations, as we compare the behavior of three groups of subjects: those who participated in an experiment with no reference to alcohol, those who were exposed to the possibility of consuming alcohol but were given a placebo and those who effectively consumed alcohol. All subjects participated in a series of economic tasks administered in the same sequence across treatments. After controlling for both the willingness to pay for an object and the potential misperception of probabilities as elicited in the experiment, we detect no effect of alcohol in depleting subjects' risk tolerance. However, we find that alcohol intoxication increases impatience and makes subjects less altruistic.

No MeSH data available.


Related in: MedlinePlus

Distribution of additional sum required to postpone payment by one day.
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pone.0121530.g005: Distribution of additional sum required to postpone payment by one day.

Mentions: One day, Seven days and Eight days refer to the additional sums required to postpone payment by the respective number of days (elicited in Phase 6 of the experiment). Fig. 5, 6, and 7 show the distribution of these variables across the different treatments, showing that alcohol consumption makes individuals more impatient. In fact, the distribution of premiums requested by subjects in the in ALC-T treatment at seven and eight days stochastically dominates that of those in the ALC-P and NO-ALC treatments. This result is confirmed by non-parametric analysis. At any future date, the average delay premium is higher in ALC-T than in ALC-P, with their difference being significant at seven and eight days. In particular, a battery of Mann-Whitney tests marginally rejects the hypothesis that the average of Seven days is the same for ALC-T and ALC-P (p = 0.0984), and the same is true for Eight days (p = 0.0985). By contrast, the same tests cannot reject equality of these variables between NO-ALC and ALC-P (p = 0.9323 and p = 0.8653, respectively), nor can they reject equality of One day between ALC-T and ALC-P (p = 0.1846).


Economic behavior under the influence of alcohol: an experiment on time preferences, risk-taking, and altruism.

Corazzini L, Filippin A, Vanin P - PLoS ONE (2015)

Distribution of additional sum required to postpone payment by one day.
© Copyright Policy
Related In: Results  -  Collection

License
Show All Figures
getmorefigures.php?uid=PMC4390359&req=5

pone.0121530.g005: Distribution of additional sum required to postpone payment by one day.
Mentions: One day, Seven days and Eight days refer to the additional sums required to postpone payment by the respective number of days (elicited in Phase 6 of the experiment). Fig. 5, 6, and 7 show the distribution of these variables across the different treatments, showing that alcohol consumption makes individuals more impatient. In fact, the distribution of premiums requested by subjects in the in ALC-T treatment at seven and eight days stochastically dominates that of those in the ALC-P and NO-ALC treatments. This result is confirmed by non-parametric analysis. At any future date, the average delay premium is higher in ALC-T than in ALC-P, with their difference being significant at seven and eight days. In particular, a battery of Mann-Whitney tests marginally rejects the hypothesis that the average of Seven days is the same for ALC-T and ALC-P (p = 0.0984), and the same is true for Eight days (p = 0.0985). By contrast, the same tests cannot reject equality of these variables between NO-ALC and ALC-P (p = 0.9323 and p = 0.8653, respectively), nor can they reject equality of One day between ALC-T and ALC-P (p = 0.1846).

Bottom Line: We report results from an incentivized laboratory experiment undertaken with the purpose of providing controlled evidence on the causal effects of alcohol consumption on risk-taking, time preferences and altruism.All subjects participated in a series of economic tasks administered in the same sequence across treatments.After controlling for both the willingness to pay for an object and the potential misperception of probabilities as elicited in the experiment, we detect no effect of alcohol in depleting subjects' risk tolerance.

View Article: PubMed Central - PubMed

Affiliation: Department of Law Science and History of Institutions, University of Messina, Messina, Italy, and ISLA, Bocconi University, Milan, Italy.

ABSTRACT
We report results from an incentivized laboratory experiment undertaken with the purpose of providing controlled evidence on the causal effects of alcohol consumption on risk-taking, time preferences and altruism. Our design disentangles the pharmacological effects of alcohol intoxication from those mediated by expectations, as we compare the behavior of three groups of subjects: those who participated in an experiment with no reference to alcohol, those who were exposed to the possibility of consuming alcohol but were given a placebo and those who effectively consumed alcohol. All subjects participated in a series of economic tasks administered in the same sequence across treatments. After controlling for both the willingness to pay for an object and the potential misperception of probabilities as elicited in the experiment, we detect no effect of alcohol in depleting subjects' risk tolerance. However, we find that alcohol intoxication increases impatience and makes subjects less altruistic.

No MeSH data available.


Related in: MedlinePlus