Gender Differences in Risk Taking

ECO 301- Literature Review Report

Gender differences in risk preferences
Group 9

[Diksha Lalit Mulani] @ 40358 (Leader) [HebaALKafri] @ 40295>

26 December, 2012

Table of Contents
Abstract ……………………………………………………………………………2
Survey of Literature……………………………………………………………....2
Extensions………………………………………………………………………….4
Directions for future research…………………………………………………...10
References…………………………………………………………………………12
Appendix…………………………………………………………………………..14

Abstract
This report is a compilation of 16 economic papers that study the topic of gender differences for risk taking. The level of risk taking while making investment decisions differs from one individual to another, based on various factors. The studies analyzed in these journal papers are summarized in the survey of literature section of this paper. Moreover, two papers have been selected to focus on the details discussed about risk taking differences amongst the two genders. A summary of these two papers has been formed in the extension section of this paper. The first journal paper is written by Charness and Gneezy (2012) which attempts to answer the question of whether the stereotype about females being more financially risk averse, holds true. The paper discusses various studies and identifies and underlying difference in the investment choices made by females as compared to males. Secondly, the article by Mittal and Vyas (2011), is discussed in detail. This article emphasizes on the psychological reasons behind the gender differences in males and females while making risky decisions. The conclusion formed from both articles is consistent, which is in conjunction with the stereotype that women are in fact more risk averse than men.
Survey of literature
Of the decisions people make in their life, many involve risk. Risk is referred to activities in which the individual chooses an option that carries the possibility

References: Bajtelsmit, V. and Bernasek, A. (1996), "Why do women invest differently than men? ',Financial Counseling and investing, Vol.7, pp.1-10. Brad M. Barber and Terrance Odean. Boys Will be Boys: Gender, Overconfidence, and Common Stock Investment.The Quarterly Journal of Economics , Vol. 116, No. 1 (Feb., 2001), pp. 261-292. Retrieved from: http://www.jstor.org/stable/2696449. Blau, Francine D., and Lawrence M. Kahn. 2000.“Gender Differences in Pay.” Journal of EconomicPerspectives, 14(4): 75–99. Graham J F, Stendardi E J, Myers J K and Graham M J (2002), “Gender Differences in Investment Strategies: An Information Processing Perspective”, International Hersch, Joni. (1996). “Smoking, Seat Belts, and Other Risky Consumer Decisions: Differences by Gender and Race,” Managerial and Decision Economics 17(5), 471–481. Kristiansen, Connie M. (1990). “The Role of Values in the Relation Between Gender and Health Behaviour,” Social Behaviour 5, 127–133. Öngen, D. (2007). The relationships between sensation seeking and gender role orientations among turkish university students. Sex Roles, 57(1-2), 111-118. doi: http://dx.doi.org/10.1007/s11199-007-9214-4 Svenson, Ola Schubert R, Gysler M, Brown M and Brachinger H (2000), “Gender Specific Attitude Towards Risk and Ambiguity: An Experimental Investigation”, Retrieved from: www The American Heritage® Dictionary of the English Language, 2000. Retrieved from http://www.thefreedictionary.com/chi-square+test.