The relative input of perceived risk and benefit in risky choices: a two-step model of risk preferences
The relative input of perceived risk and benefit in risky choices: a two-step model of risk preferences
StatusPost-Print
Alternative title
Authors
Sokołowska-Pohorille, Joanna
Michalaszek, Agata
Gugala, Ida
Monograph
Monograph (alternative title)
Date
2021-09-13
Publisher
Journal title
Decision
Issue
4
Volume
8
Pages
Pages
327-345
ISSN
2325-9965
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Access date
2025-07-22
Abstract PL
Abstract EN
The most salient characteristic of a risky choice is an approach–avoidance conflict—a desire to maximize benefits and minimize risk. This conflict is directly addressed in Risk–Value (R–V) models. Our goal is to determine to what extend the positive correlation between risk and value assumed in these models actually holds, as it is a necessary condition for tradeoffs. If people do not perceive a R–V relation as positive, there is no conflict, and decisions may be made on the basis of either criterion according to a lexicographic strategy, whereby either the least risky or the most beneficial option is chosen. The dependence between perception of the R–V relation and decision strategies was tested in three studies performed with 411 university students. Experimental (Studies 1–3) and questionnaire (Studies 2–3) measurements were used. In experiments, participants rated riskiness of two-outcome
lotteries and made choices between a lottery and a sure thing. The perceived R–V relation was also investigated by way of three scales in the Domain-Specific Risk-Taking (DOSPERT) questionnaire—willingness to take risk (RT), perceived risk (PR), and expected benefits (EB). Our findings support the hypothesis that perception of a positive R–V relation is necessary for trade-offs—the PR and EB scores are positively correlated for those, who make trade-offs. When the scores on the PR and EB scales are negatively correlated, preferences are described as a function of either perceived risk, or EB only.
Abstract other
Keywords PL
Keywords EN
perceived risk
R–V models
affect heuristic
lexicographic risk preferences
R–V models
affect heuristic
lexicographic risk preferences
Keywords other
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Strategie inwestorów giełdowych w okresie koniunktury, stagnacji i dekoniunktury
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