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Cross‐Cultural Differences in Risk Perception: A Model‐Based Approach
Author(s) -
Bontempo Robert N.,
Bottom William P.,
Weber Elke U.
Publication year - 1997
Publication title -
risk analysis
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.972
H-Index - 130
eISSN - 1539-6924
pISSN - 0272-4332
DOI - 10.1111/j.1539-6924.1997.tb00888.x
Subject(s) - risk perception , nationality , perception , uncertainty avoidance , psychology , social psychology , cultural diversity , set (abstract data type) , financial risk , actuarial science , demography , demographic economics , economics , geography , sociology , immigration , computer science , market economy , archaeology , neuroscience , individualism , collectivism , programming language , anthropology
The present study assessed cross‐cultural differences in the perception of financial risks. Students at large universities in Hong Kong, Taiwan, the Netherlands, and the U.S., as well as a group of Taiwanese security analysts rated the riskiness of a set of monetary lotteries. Risk judgments differed with nationality, but not with occupation (students vs. security analysts) and were modeled by the Conjoint Expected Risk (CER) model. (1) Consistent with cultural differences in country uncertainty avoidance, (2) CER model parameters of respondents from the two Western countries differed from those of respondents from the two countries with Chinese cultural roots: The risk judgments of respondents from Hong Kong and Taiwan were more sensitive to the magnitude of potential losses and less mitigated by the probability of positive outcomes.