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Risk perception and risky choice: Situational, informational and dispositional effects
Author(s) -
Xie XiaoFei,
Wang X. T. XiaoTian
Publication year - 2003
Publication title -
asian journal of social psychology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.5
H-Index - 49
eISSN - 1467-839X
pISSN - 1367-2223
DOI - 10.1111/1467-839x.t01-1-00015
Subject(s) - situational ethics , psychology , framing (construction) , social psychology , perception , risk perception , risk seeking , framing effect , prospect theory , preference , economics , microeconomics , persuasion , structural engineering , neuroscience , engineering
We investigated how situational (gain–loss), informational (opportunity–threat framing) and dispositional (achievement motive and avoidance motive) variables affected opportunity–threat perception and risky choice in managerial decision‐making contexts. In Study 1, the risk preference of the participants showed a reflection effect due to situational differences (gain or loss) and a partial framing effect caused by presenting the same choice information in terms of either opportunities or threats. However, both effects were in the opposite direction of predictions from prospect theory. Gains and positive framing enhanced risk‐seeking preference whereas losses and negative framing augmented risk‐averse preference. Risk‐seeking choices were mediated by opportunity perception whereas risk‐averse choices were mediated by threat perception. In Study 2, the participants high in achievement motive perceived greater opportunities in a negative situation, and the participants high in avoidance motive perceived greater threats in a positive situation, suggesting that ambition (achievement motive) operates more significantly in the face of adversities whereas cautiousness (avoidance motive) functions more significantly in prosperity.