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Who decides in the household when risk preferences conflict?
Ben D'Exelle1, Charlotte Ringdal2
1University of East Anglia, Norwich, UK.
Review of Economics of the Household
|June 4, 2026
Summary
Women
Area of Science:
- Socioeconomic studies
- Gender studies
- Behavioral economics
Background:
- Women's limited participation in household decisions perpetuates gender inequality in developing nations.
- This lack of involvement restricts women's access to resources and opportunities.
- The underlying behavioral mechanisms driving women's low decision-making power remain underexplored.
Purpose of the Study:
- To investigate the behavioral mechanisms behind women's low involvement in household decisions.
- To test the hypothesis that women avoid decision-making to prevent spousal conflict.
- To examine the role of spousal differences in risk preferences on joint decision-making.
Main Methods:
- Utilized survey data from 675 couples in rural Tanzania.
- Collected data from both husbands and wives to capture spousal perspectives.
- Employed a theoretical model to guide the analysis of decision-making dynamics.
Main Results:
- Significant association found between spousal differences in risk preferences and reduced joint household decision-making.
- Greater differences in risk preferences correlated with a higher likelihood of husbands making decisions unilaterally.
- The negative impact of risk preference disparity on joint decisions was amplified in couples where wives exhibited higher conflict aversion.
Conclusions:
- Spousal differences in risk preferences significantly influence household decision-making dynamics in rural Tanzania.
- Women's conflict aversion may exacerbate the negative effects of risk preference disparities on their participation.
- Addressing spousal differences in risk preferences and conflict aversion could be key to enhancing women's involvement in household decisions and promoting gender equality.
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