Abstract
Choices under risk often have consequences for ourselves and others. Yet, it is unclear how the other’s identity (stranger, close friend, etc.) influences risky choices made on their behalf. In a mixed within and between subjects design, two participant groups made three series of risky economic decisions: for themselves, another person, or for both themselves and another person (i.e., shared outcomes). One group made choices involving a same-sex stranger (n = 29), the other made choices involving a same-sex close friend (n = 28). Hierarchical Bayesian estimation of computations underlying risky decision-making revealed that relative to choosing for themselves, people were more risk averse, loss averse, and consistent when choices involved another person. Partner identity was additionally crucial: people became risk neutral and more consistent when choosing for friends relative to strangers. These findings establish that the complexity of the social world is mirrored in its nuanced consequences for our choices.