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4 - Risk-Taking, Risk Perception, and Risk Compensation in Times of COVID-19

from Part I - Evidence from Experiments and Behavioural Insights

Published online by Cambridge University Press:  31 January 2025

By
Benno Guenther ,
Virginia Fedrigo  and
Jet Sanders
Edited by
Joan Costa-Font  and
Matteo M. Galizzi
Joan Costa-Font
Affiliation:
London School of Economics and Political Science
Matteo M. Galizzi
Affiliation:
London School of Economics and Political Science
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Summary

Two years after the initial outbreak in 2020, SARS-CoV-2 continues to have a disruptive impact on day-to-day life for billions of people around the world. Despite high vaccination rates, high-income countries report record rates of infection with the Omicron variant in spring 2022. Adapting to the pandemic has led to significant behaviour change, such as increased working from home, social distancing, and mask-wearing. With this, perceptions of everyday situations (e.g., taking public transport or grocery shopping) have become risky in COVID-19 times. As risk tolerance is a key component to decision-making, changes in perceived risk may alter decision-making in the (post) COVID-19 world. In this chapter we summarise findings on risk-taking in times of COVID-19, with an aim to offer insights for policy purposes in this pandemic and for future pandemic preparedness. In particular, we summarise (i) the impact of COVID-19 on individual risk tolerance; (ii) the heterogeneity of risk tolerance during times of COVID-19; (iii) their relative effects on behaviour; and (iv) any evidence for risk compensation in the context of COVID-19.

Keywords

risk perceptionsrisk communication
Type
Chapter
Information
Behavioural Economics and Policy for Pandemics
Insights from Responses to COVID-19
 , pp. 57 - 76
Publisher: Cambridge University Press
Print publication year: 2024

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