Beyond risk seeking and risk aversion: personality and the dual nature of economic risk taking

2001 ◽  
Vol 15 (1_suppl) ◽  
pp. S105-S122 ◽  
Author(s):  
Tomasz Zaleskiewicz
Keyword(s):  
Risk Aversion ◽  
Risk Taking ◽  
Sensation Seeking ◽  
Reliability And Validity ◽  
Empirical Examination ◽  
Dual Nature ◽  
Financial Decisions ◽  
Risk Seeking ◽  
Human Attitude ◽  
Personality Features

In economic theories it is assumed that risk aversion is a typical human attitude toward risk, and differences are determined by the curvature of the utility function. The results of psychological studies have indicated, however, that people differ in how they make financial decisions under uncertainty and what motivates them to take economic risks. This paper introduces two kinds of risk taking, instrumental risk taking and stimulating risk taking, and reports their empirical examination in two studies. The purpose of these studies was to test the reliability and validity of the Stimulating–Instrumental Risk Inventory—a method used to measure the two risk taking tendencies. It was found that instrumental risk taking is related to risk preference in the investment domain and is determined by personality traits connected with orientation toward the future, the tendency to think rationally, impulsivity, and sensation seeking. Stimulating risk taking was found to be related to the preference for recreational, ethical, health, and gambling risks and was associated with personality features connected with paratelic orientation, arousal seeking, impulsivity, and strong sensation seeking. Copyright © 2001 John Wiley & Sons, Ltd.

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.

scholarly journals Impact of Induced Moods, Sensation Seeking, and Emotional Contagion on Economic Decisions Under Risk

2022 ◽  
Vol 12 ◽  
Author(s):  
Kirill Efimov ◽  
Ioannis Ntoumanis ◽  
Olga Kuskova ◽  
Dzerassa Kadieva ◽  
Ksenia Panidi ◽  
...  
Keyword(s):  
Risk Aversion ◽  
Personality Traits ◽  
Risk Taking ◽  
Sensation Seeking ◽  
Financial Risk ◽  
Emotional Contagion ◽  
Simple Task ◽  
Decisions Under Risk ◽  
Increased Risk ◽  
Sad Mood

In addition to probabilities of monetary gains and losses, personality traits, socio-economic factors, and specific contexts such as emotions and framing influence financial risk taking. Here, we investigated the effects of joyful, neutral, and sad mood states on participants’ risk-taking behaviour in a simple task with safe and risky options. We also analysed the effect of framing on risk taking. In different trials, a safe option was framed in terms of either financial gains or losses. Moreover, we investigated the effects of emotional contagion and sensation-seeking personality traits on risk taking in this task. We did not observe a significant effect of induced moods on risk taking. Sad mood resulted in a slight non-significant trend of risk aversion compared to a neutral mood. Our results partially replicate previous findings regarding the presence of the framing effect. As a novel finding, we observed that participants with a low emotional contagion score demonstrated increased risk aversion during a sad mood and a similar trend at the edge of significance was present in high sensation seekers. Overall, our results highlight the importance of taking into account personality traits of experimental participants in financial risk-taking studies.

Risk

2020 ◽  
pp. 141-160
Author(s):  
Anusha Kedhar
Keyword(s):  
Twentieth Century ◽  
Risk Aversion ◽  
South Asian ◽  
Risk Taking ◽  
Significant Shift ◽  
Physical Pain ◽  
Risk Seeking ◽  
Late Twentieth ◽  
Late Twentieth Century ◽  
Care Of Self

Chapter 4 theorizes flexibility in relation to neoliberal discourses of risk. The beginnings of neoliberalism in the 1970s are marked by a significant shift in capital’s relationship to risk, from risk-aversion to risk-seeking. The emergence of British South Asian dance in the 1980s roughly aligns with this late twentieth-century rise in risk-taking. This chapter examines how neoliberal demands for risk echo and intersect with British multiculturalism’s expectations on South Asian dancers to display virtuosity, speed, and versatility. Together, they create conditions of physical pain and economic precarity for racialized dancing bodies. Dancers’ bodies, however, are not merely inscribed by neoliberalism and multiculturalism. South Asian dancers use choreographic tools and other bodily tactics to gain creative control over their bodily labor and continue to circulate within a competitive British dance economy in ways that are safe and pleasurable. Drawing on Talal Asad’s notion of “pain as action,” this chapter demonstrates how British South Asian dancers intentionally and strategically respond to demands for risk-taking and flexibility through small, seemingly insignificant corporeal tactics, such as enduring pain, modifying choreographic tasks, and practicing care of self and care of others.

scholarly journals Daily and momentary sensation-seeking and urgency in young adults: Associations with risk-taking and sleep

2021 ◽  
Author(s):  
Amanda Lee McGowan ◽  
Emily B. Falk ◽  
Perry Zurn ◽  
Danielle S Bassett ◽  
David M. Lydon-Staley
Keyword(s):  
Decision Making ◽  
Sleep Quality ◽  
Young Adulthood ◽  
Risk Taking ◽  
Sensation Seeking ◽  
Daily Life ◽  
Daily Diary ◽  
Positive Outcomes ◽  
Diary Data ◽  
Risk Seeking

Fluctuations in sensation-seeking may affect risk-taking, necessitating a consideration of these fluctuations as well as their antecedents. In 21-day daily diary data (n=78 participants; mean age=21.18, SD=1.75; 80.77% women), days of higher than usual sensation-seeking are also days of higher than usual risk-taking and are more likely to be alcohol use days than days of lower than usual sensation-seeking. On average, outcomes of risky behavior are rated positively. In 6-times a day experience-sampling data from the same participants over the same 21 days, we examine sleep as potential antecedent of fluctuations in sensation-seeking. We find that sensation-seeking peaks higher and earlier following nights of higher than usual sleep quality relative to days following average and lower than usual sleep quality. Together, findings suggest that seeking out novel experiences in daily life without rash decision-making leads to positive outcomes in young adulthood and positive risk-seeking may be supported by sleep quality.

scholarly journals Gambling on an empty stomach: Hunger modulates preferences for learned but not described risks

2021 ◽  
Author(s):  
Maaike M.H. van Swieten ◽  
Rafal Bogacz ◽  
Sanjay G. Manohar
Keyword(s):  
Decision Making ◽  
Risk Aversion ◽  
Risk Taking ◽  
Risk Preferences ◽  
The Other ◽  
Empty Stomach ◽  
Metabolic State ◽  
Strongly Coupled ◽  
Risk Seeking ◽  
Other Hand

AbstractWe assess risks differently when they are explicitly described, compared to when we learn directly from experience, suggesting dissociable decision-making systems. Our needs, such as hunger, could globally affect our risk preferences, but do they affect described and learned risks equally? On one hand, explicit decision-making is often considered flexible and contextsensitive, and might therefore be modulated by metabolic needs. On the other hand, implicit preferences learned through reinforcement might be more strongly coupled to biological drives. To answer this, we asked participants to choose between two options with different risks, where the probabilities of monetary outcomes were either described or learned. In agreement with previous studies, rewarding contexts induced risk-aversion when risks were explicitly described, but risk-seeking when they were learned through experience. Crucially, hunger attenuated these contextual biases, but only for learned risks. The results suggest that our metabolic state determines risk-taking biases when we lack explicit descriptions.

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.

The Need Inventory of Sensation Seeking (NISS)

2012 ◽  
Vol 28 (1) ◽  
pp. 11-18 ◽  
Author(s):  
Marcus Roth ◽  
Philipp Hammelstein
Keyword(s):  
Sensation Seeking ◽  
Reliability And Validity ◽  
Assessment Method ◽  
Factorial Structure ◽  
Conventional Methods ◽  
New Research ◽  
Sensation Seeking Scale ◽  
Temperamental Trait ◽  
Nonclinical Study

Based on the conception of sensation seeking as a need rather than a temperamental trait ( Hammelstein, 2004 ), we present a new assessment method, the Need Inventory of Sensation Seeking (NISS), which is considered to assess a motivational disposition. Three studies are presented: The first examined the factorial structure and the reliability of the German versions of the NISS; the second study compared the German and the English versions of the NISS; and finally, the validity of the NISS was examined in a nonclinical study and compared to the validity of conventional methods of assessing sensation seeking (Sensation Seeking Scale – Form V; SSS-V). Compared to the SSS-V, the NISS shows better reliability and validity in addition to providing new research possibilities including application in experimental areas.

Positive risk-taking: Mixed-methods validation of a self-report scale and evidence for genetic links to personality and negative risk-taking

2019 ◽  
Author(s):  
Megan Wales Patterson ◽  
Lilla Pivnick ◽  
Frank D Mann ◽  
Andrew D Grotzinger ◽  
Kathryn C Monahan ◽  
...  
Keyword(s):  
Youth Development ◽  
Risk Taking ◽  
Sensation Seeking ◽  
Empirical Work ◽  
Well Being ◽  
Population Based ◽  
Self Report ◽  
Personality Factors ◽  
Positive Behaviors ◽  
Adolescent Risk

Adolescents are more likely to take risks. Typically, research on adolescent risk-taking has focused on its negative health and societal consequences. However, some risk-taking behaviors might be positive, defined here as behavior that does not violate the rights of others and that might advance socially-valuable goals. Empirical work on positive risk-taking has been limited by measurement challenges. In this study, we elicited adolescents’ free responses (n = 75) about a time they took a risk. Based on thematic coding, we identified positive behaviors described as risks and selected items to form a self-report scale. The resulting positive risk-taking scale was quantitatively validated in a population-based sample of adolescent twins (n = 1249). Second, we evaluated associations between positive risk-taking, negative risk-taking, and potential personality and peer correlates using a genetically informed design. Sensation seeking predicted negative and positive risk-taking equally strongly, whereas extraversion differentiated forms of risk-taking. Additive genetic influences on personality accounted for the total heritability in positive risk-taking. Indirect pathways from personality through positive and negative peer environments were identified. These results provide promising evidence that personality factors of sensation seeking and extraversion can manifest as engagement in positive risks. Increased understanding of positive manifestations of adolescent risk-taking may yield targets for positive youth development strategies to bolster youth well-being.

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