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Exploring the relationship between mask-wearing and risk preference, evidence from lab experiments

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Abstract

A growing literature has addressed the impact of mask-wearing on people’s social interaction, mental health, and physical health. However, the potential relationship between mask-wearing and people’s risk preference has not been extensively studied in the current literature. We hypothesize that mask wearing can temporarily make people more prevention-focused, and in this mode, people are more cautious and risk- averse to avoid negative outcomes. To test our hypothesis, we conducted multiple sessions of lab experiments on 117 students in Cornell University. The experiment involves risk elicitation methods and the Regulatory Focus Scale. We found weak evidence that participants in the treatment are more risk seeking than the control, which is contrary to our initial assumption. We reflected on the potential limitations of the experiment and the behavioral models, discussed the possibility and reasoning of the alternative assumption, and synthesized relevant literature that might support our contradictory finding.

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Description

72 pages

Supplemental file(s) description: None.

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Date Issued

2023-08

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Keywords

mask-wearing; Regulatory Focus Scale; Regulatory Focus Theory; risk elicitation; risk preference

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Union Local

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Committee Chair

Just, David

Committee Co-Chair

Committee Member

Bogan, Vicki

Degree Discipline

Applied Economics and Management

Degree Name

M.S., Applied Economics and Management

Degree Level

Master of Science

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Government Document

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dissertation or thesis

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