Conferences
THE INFLUENCE OF RELATIONAL GOODS ON RISK AVERSION
Marcelo Siles and Lindon Robison
Summary
An important contribution of socio-economics is recognizing the importance of relational goods, intangible signals that validate, express belong, and contribute to transcendence. Furthermore, when included in commodity exchanges, relational goods alter the terms and level of exchange measured in commodities and the selection of exchange partners. Since the concept of relational goods is relatively new and has been only recently recognized for its economic importance, there is a need to demonstrate its existence and its influence on commodity exchanges. To this end, we created an exercise involving choices with uncertain outcomes that can be played by a network of persons known to each other or individually. The exercise is played in two rounds. In the first round, participants are aware of and affected by each other’s choices. In the second round, the same game is played in isolation. In the past, performances varied significantly depending on whether the exercise was experienced alone or with others--even though everything else about the experience was held constant. These results support the importance of relational goods conveyed in networks.
Details
| Conference | 2025 Extension Risk Management Education National Conference |
| Presentation Type | 30-minute Concurrent |