Risk Tolerance and Cheap Talk in the College Classroom

Core Ideas Demographics influence students’ risk tolerance. Understanding risk tolerance helps faculty encourage students to take chances in their learning. Casual phrases may matter in effective classroom communication.The objectives of this study were to identify characteristics that affect students’ reported levels of risk tolerance and to measure the effect of “cheap talk” (simple, non‐binding, nonverifiable messages) on classroom communication. In fall of 2017 and spring of 2018, questionnaires ( n = 129) were administered in a farm management class at Illinois State University, addressing students’ perceptions of their individual risk tolerance. On a scale ranging from 1 (don't like to take risks) to 7 (fully prepared to take risks), males reported higher risk tolerance than females ( p < 0.01). Risk tolerance also increased numerically in farm vs. nonfarm students (4.75 vs. 4.47). Approximately half of the students randomly received questionnaires that included cheap talk statements, which informed them that people tend to say they are willing to take more risk than what they actually take in real‐life situations. Risk tolerance decreased numerically in those receiving cheap talk statements (4.44 vs. 4.80), indicating that those simple messages may affect students’ perception. Instructors may bring cheap talk into the classroom with offhand remarks, and these results suggest that casual phrases matter in effective classroom communication. By identifying characteristics that affect students’ tolerance for risk, the results of this study may inform efforts to encourage students as they navigate the challenging and unfamiliar college environment and take risks in their learning.