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Monday, December 15, 2008

Alcohol Consumption and Risk Attitude

This study examines the effect of alcohol on individual preferences in lottery games of varying risk profiles.

The experiment was carried out in the field where the subjects were randomly sampled from a pool of visiting
adults in festive-mood who were in the natural environment for drinking and social interactions.
The results suggest that men’s risky behaviour is negatively correlated with alcohol expectancies, while women’s risky behaviour is negatively correlated with their actual alcohol consumption.
The environment seems to have an additional effect on the subject's risk preferences.


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