ICES Seminar in Experimental Economics and Game Theory

The Impact of Exposure to Armed Conflict on Risk and Ambiguity Attitudes

Friday, November 19, 2021 12:00 PM to 1:00 PM
Online Location, Zoom Meeting

ICES Seminar in Experimental Economics and Game Theory

The ICES Seminar in Experimental Economics and Game Theory of the Fall 2021 semester will feature:

Neslihan Uler

University of Maryland

The Impact of Exposure to Armed Conflict on Risk and Ambiguity Attitudes

 

Please contact ICES Office Manager (sbahabib@gmu.edu) for Zoom link.

 

Abstract

We conduct an incentive-compatible lab-in-the-field experiment with a large representative sample to study how exposure to armed conflict affects risk and ambiguity attitudes of individuals. We identify random exposure to conflict by relying on a natural experiment in Turkey created by the military institutions and the long running civil conflict in the country. We show that the effects on risk and ambiguity attitudes depend on the type of exposure. We find that as the degree of exposure to the armed conflict environment increases individuals become more tolerant to risk. Having traumatic direct experiences of armed violence, however, creates the opposite effect and renders them extremely risk averse. Such individuals are also more likely to be ambiguity averse. We also show that time since exposure should be considered in determining the overall effects.

 

For more information about the Seminar Series, please visit the Seminar Schedule homepage.

Add this event to your calendar