Exploring The Transformative Effects Of The Russianukrainian War On Risk Preferences In A Selected Segment Of The Ukrainian Population

The consequences of conflict stretch beyond mere battlegrounds while also fracturing social bonds and exacerbating impatience among populations. These effects can hinder the processes of economic recovery, which are significantly influenced by shifts in risk preferences. In light of this, the present study aims to assess how the Russian-Ukrainian war has affected the risk preferences of the particular group of Ukrainian populaces. The thesis's objective is to ascertain the impact of the Russian-Ukrainian war on individuals' risk preferences, leveraging data from an online poker platform. Central inquiries revolve around discerning any inclination towards risk-taking among Ukrainians. The econometric model employs the Difference in Difference method to ascertain the war's impact on Ukrainian risk preferences. In essence, this study seeks to elucidate the intricate relationship between conflict, risk preferences, and economic behavior, offering insights crucial for post-conflict recovery strategies. In summary, the analysis findings underscore the transition of risk preferences among a specific segment of Ukraine's population, moving from being more inclined towards taking risks before the war to being more cautious after the invasion. Over the initial three months of the conflict, Ukrainians experienced a reduction in the frequency of participation in poker hands despite no significant changes in the average gameplay performance among players.