By the use of controlled laboratory experiments, Miguel Luzuriaga investigates how people take economic decisions on behalf of others. In particular, he studies situations where either trust or risk is involved.
He shows that it is difficult to implement profitable trust-based transactions if the trust decision is delegated. The reason is that it is harder to reciprocate trustful actions when the reciprocal action is not directly beneficial for the decision maker.
Luzuriaga also shows that people tend to take less risk on behalf of others than on behalf of themselves. He finds, however, that people think that others take more risk on behalf of others than on behalf of themselves.
Furthermore, Luzuriaga finds that the decision-makers’ information about their client’s gender or personality traits may affect their risk decisions.
The research can illuminate how people who manage other people's money think and behave.
It can also show how the delegation of economic decisions affects economic outcomes. This is relevant for a range of economic settings both in markets and organizations.
Mr Luzuriaga´s thesis is titled «Trust, risk-taking, and other-regarding preferences» and is funded by the Norwegian Research Council and the University of Stavanger.
His doctoral work was supervised by professor Ola Kvaløy and Associate professor Kristoffer W. Eriksen from UiS Business School.