scholarly journals Distinguishing three effects of time pressure on risk taking: Choice consistency, risk preference, and strategy selection

2021 ◽  
Author(s):  
Sebastian Olschewski ◽  
Jörg Rieskamp
Keyword(s):  
Risk Taking ◽  
Time Pressure ◽  
Risk Preference ◽  
Strategy Selection ◽  
Choice Consistency

Respondents in Asian Cultures (e.g., Chinese) are More Risk-Seeking and More Overconfident than Respondents in Other Cultures (e.g., in United States) but the Reciprocal Predictions are in Total Opposition: How and Why?

2004 ◽  
Vol 4 (2) ◽  
pp. 263-292 ◽  
Author(s):  
Shu Li ◽  
Yongqing Fang
Keyword(s):  
United States ◽  
Social Network ◽  
Risk Taking ◽  
Risk Preferences ◽  
Risk Preference ◽  
Cross Cultural ◽  
Cultural Variations ◽  
Risk Seeking ◽  
The Social ◽  
Predicted Risk

AbstractTriggered by rather surprising findings that respondents in Asian cultures (e.g., Chinese) are more risk-seeking and more overconfident than respondents in other cultures (e.g., in United States) and that the reciprocal predictions are in total opposition, four experiments were designed to extend previous collective-culture oriented researches. Results revealed that (1) Singapore 21, which is a vision of Singapore in the 21st century and has highlighted the promotion of a collective culture, did not advocate greater risk-seeking but led to weaker overconfidence; (2) the knowledge of "financial help from social network" did not permit prediction of risk preference but the knowledge of "the value difference between possible outcomes" did; (3) the social network could be viewed not only as a positive "cushion" but also as a negative "burden" in both gain and loss domains of risky choices; (4) the predictions of the risk-as-value, risk-as-feelings and stereotype hypotheses were not consistent with the predicted risk preferences of others but the predictions of the economic-performance hypothesis were consistent with the predicted risk preferences as well as the predicted overconfidence of others. The implications for cross-cultural variations in overconfidence and for cross-cultural variations in risk-taking were discussed.

Financial risk-taking related to individual risk preference, social comparison and competition

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tommy Gärling ◽  
Dawei Fang ◽  
Martin Holmen ◽  
Patrik Michaelsen
Keyword(s):  
Social Comparison ◽  
Risk Taking ◽  
Financial Risk ◽  
Risk Preference ◽  
The Other ◽  
Individual Risk ◽  
Additional Increase ◽  
Content Type ◽  
Market Experiments ◽  
Increases In Risk

PurposeThe purpose of this paper is to investigate how social comparison and motivation to compete account for elevated risk-taking in fund management corroborated by asset market experiments when performance depends on rank-based incentives.Design/methodology/approachIn two laboratory experiments, university students (n1 = 240/n2 = 120) make choices between risky and certain outcomes of hypothetical sums of money. Both experiments investigate in which direction risky choices in an individual condition (individual risk preference) are shifted when participants compare their performance to another participant's performance (social comparison), being instructed or not to outperform the other (incentive to compete).FindingsIn the absence of incentives to compete, participants tend to minimize the differences between expected outcomes to themselves and to the other, but when provided with incentives to compete, they tend to maximize these differences. An independent additional increase in risk-taking is observed when participants are provided with incentives to compete.Originality/valueOriginal findings include that social comparison does not evoke motivation to compete unless incentives are offered and that increases in risk-taking depend both on what the other chooses and the incentives.

scholarly journals How people know their risk preference

2019 ◽  
Author(s):  
Ruben C. Arslan ◽  
Martin Brümmer ◽  
Thomas Dohmen ◽  
Johanna Drewelies ◽  
Ralph Hertwig ◽  
...  
Keyword(s):  
Risk Taking ◽  
Real World ◽  
Revealed Preference ◽  
Risk Preference ◽  
Stated Preferences ◽  
The Self ◽  
Third Party ◽  
High Stakes ◽  
Dominant Class ◽  
Predictive Risk

People differ in their willingness to take risks. Recent work found that revealed preference tasks (e.g., laboratory lotteries)—a dominant class of measures—are outperformed by survey-based stated preferences, which are more stable and predict real-world risk taking across different domains. How can stated preferences, often criticised as inconsequential “cheap talk,” be more valid and predictive than controlled, incentivized lotteries? In our multimethod study, over 3,000 respondents from population samples answered a single widely used and predictive risk-preference question. Respondents then explained the reasoning behind their answer. They tended to recount diagnostic behaviours and experiences, focusing on voluntary, consequential acts and experiences from which they seemed to infer their risk preference. We found that third-party readers of respondents’ brief memories and explanations reached similar inferences about respondents’ preferences, indicating the intersubjective validity of this information. Our results help unpack the self perception behind stated risk preferences that permits people to draw upon their own understanding of what constitutes diagnostic behaviours and experiences, as revealed in high-stakes situations in the real world.

scholarly journals The Effect of Time Pressure on Risky Financial Decisions from Description and Decisions from Experience

2021 ◽  
Author(s):  
Pete Wegier ◽  
Julia Spaniol
Keyword(s):  
Decision Making ◽  
Opposite Direction ◽  
Risk Taking ◽  
Time Pressure ◽  
Time Constraints ◽  
Decisions From Experience ◽  
Financial Decisions ◽  
Risk Seeking ◽  
Gain And Loss ◽  
Decision Tasks

Time pressure has been found to impact decision making in various ways, but studies on the effects time pressure in risky financial gambles have been largely limited to description-based decision tasks and to the gain domain. We present two experiments that investigated the effect of time pressure on decisions from description and decisions from experience, across both gain and loss domains. In description-based choice, time pressure decreased risk seeking for losses, whereas for gains there was a trend in the opposite direction. In experience-based choice, no impact of time pressure was observed on risk-taking, suggesting that time constraints may not alter attitudes towards risk when outcomes are learned through experience.

RISK PREFERENCE IN PATIENTS WITH OBSTRUCTIVE SLEEP APNOEA SYNDROME IS MODULATED BY THE GAIN OR LOSS CONTEXT

2018 ◽  
Vol 16 (4) ◽  
pp. 329-341
Author(s):  
Agnès Daurat ◽  
Jean-Luc Bret-Dibat ◽  
Radouane El Yagoubi
Keyword(s):  
Obstructive Sleep Apnoea ◽  
Risk Taking ◽  
Risk Preference ◽  
Sleep Apnoea ◽  
Obstructive Sleep Apnoea Syndrome ◽  
Risky Behaviour ◽  
Sleep Apnoea Syndrome ◽  
Risky Choices ◽  
Obstructive Sleep ◽  
And Control

The aim of the present study was to assess the propensity for risk taking among patients with obstructive sleep apnoea syndrome by means of a single-outcome gambling task that involved actual monetary losses and gains. We recruited 23 patients and 17 controls matched for sex, age and education. To explore the influence of previous outcomes on risky behaviour, we calculated the proportion of risky choices following sequences of one, two or three consecutive gains or losses. Patients with OSAS made significantly more risky choices than the controls. However, like the controls, they made more risky choices after two and three losses than after one, and fewer risky choices after two and three gains than after one. Their level of impulsivity did not differ from that of the controls. Our results show that OSAS induces a shift towards risk preference, but the ability to fully monitor and control ongoing behaviour remains intact.

scholarly journals The Effects of Asynchronous Computer Voice Conferencing on L2 Learners' Speaking Anxiety

2011 ◽  
Vol 41 (1) ◽  
pp. 33-63 ◽  
Author(s):  
María Isabel Charle Poza
Keyword(s):  
Foreign Language ◽  
Risk Taking ◽  
Time Pressure ◽  
Computer Anxiety ◽  
Anxiety Scale ◽  
Negative Evaluation ◽  
Speaking Anxiety ◽  
Increased Risk ◽  
Language Classroom

This study investigated the influence of a computer voice conferencing environment (Wimba) on learners’ anxiety when speaking in a foreign language. Several instruments were used for data collection: A demographic survey, the Computer Anxiety Index (CAIN), the Foreign Language Classroom Anxiety Scale (FLCAS), the Wimba Anxiety Scale, student interviews, and a rubric developed for the evaluation of risk-taking. Results indicate that there is a strong potential for the reduction of anxiety associated with the Wimba environment. This was due to the elimination of the time pressure of the classroom and opportunity to edit student contributions. Increased risk-taking, in terms of the quantity and quality of the output produced by students, and reduced fear of negative evaluation were also found in the electronic environment. The conditions of the facility where the Wimba environment is accessed, i.e. a language laboratory, were found to hinder Wimba’s anxiety-reducing potential.

scholarly journals Time pressure and risk taking in auctions: A field experiment

2019 ◽  
Vol 78 ◽  
pp. 68-79
Author(s):  
Anouar El Haji ◽  
Michał Krawczyk ◽  
Marta Sylwestrzak ◽  
Ewa Zawojska
Keyword(s):  
Field Experiment ◽  
Risk Taking ◽  
Time Pressure
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