Using Pandemic Behavior to Test the External Validity of Laboratory Measurements of Risk Aversion and Guilt.

ABSTRACT

We test whether laboratory measures of individual preferences for risk and guilt relate to risk-connected behaviors in a pandemic, such as socializing, dining in at restaurants, and hand washing. We utilize a survey administrated to a nationally representative subject pool in the United States in April, 2020 - the month following the declaration of a national state of emergency in response to the global outbreak of COVID-19. We find that higher levels of risk aversion are associated with risk-reducing behaviors during the COVID-19 pandemic. Meanwhile, we do not find strong evidence that guilt relates to the same behavior.