Professional norms and risk-taking of bank employees: Do expectations of peers’ risk preferences matter?

2021 ◽  
Vol 56 ◽  
pp. 100938
Author(s):  
Jiafu An ◽  
Mengfei Jiang ◽  
Jiaman Xu
Keyword(s):  
Risk Taking ◽  
Risk Preferences ◽  
Professional Norms ◽  
Bank Employees

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.

scholarly journals Do Professional Norms in the Banking Industry Favor Risk-taking?

2017 ◽  
Vol 30 (11) ◽  
pp. 3801-3823 ◽  
Author(s):  
Alain Cohn ◽  
Ernst Fehr ◽  
Michel André Maréchal
Keyword(s):  
Risk Taking ◽  
Banking Industry ◽  
Professional Norms

Exploration of Academic Risk Taking Among College Students

2018 ◽  
Vol 5 (2) ◽  
pp. 17-29
Author(s):  
M. Keith Wright ◽  
Utpal Bose ◽  
Shohreh Hashemi ◽  
Diana Pence
Keyword(s):  
College Students ◽  
Risk Taking ◽  
Risk Preferences ◽  
New Method ◽  
Future Research ◽  
Academic Risk ◽  
Conventional Methods ◽  
Student Risk

This article presents and experimentally tests a new method for measuring student risk preferences where monetary outcomes are not directly involved. The authors call this new method the Lazy Professor Risk Task (LPRT). This article compares the LPRT's results to popular conventional methods where monetary outcomes are involved. The results show that the new method is capable of producing consistent responses at approximately the same rate as comparable conventional methods. In addition, the method produced responses that were no noisier than conventional methods. It is hoped that future research can perfect this new method and use it to compare classroom risk taking to risk taking in other domains.

scholarly journals Depression, Risk Preferences and Risk-taking Behavior

2020 ◽  
pp. 0419-10183R1
Author(s):  
Deborah A. Cobb-Clark ◽  
Sarah C. Dahmann ◽  
Nathan Kettlewell
Keyword(s):  
Risk Taking ◽  
Risk Preferences ◽  
Depression Risk ◽  
Risk Taking Behavior

Suitable Aggregation Models Based on Risk Preferences for Supplier Selection and Order Allocation Problem

2018 ◽  
Vol 22 (1) ◽  
pp. 5-16 ◽  
Author(s):  
Sirin Suprasongsin ◽  
Pisal Yenradee ◽  
Van-Nam Huynh ◽  
Chayakrit Charoensiriwath ◽  
◽  
...  
Keyword(s):  
Risk Taking ◽  
Supplier Selection ◽  
Selection Criteria ◽  
Risk Preferences ◽  
Statistical Technique ◽  
Aggregation Operator ◽  
Aggregation Operators ◽  
Decision Makers ◽  
Multiple Objective Linear Programming ◽  
Order Allocation

In this paper, we propose (a) fuzzy multiple objective linear programming models for the Supplier Selection and Order Allocation (SSOA) problem under fuzzy demand and volume/quantity discount environments, and (b) an analysis of how to select the suitable aggregation operator based on the risk preferences of decision makers. The aggregation operators under consideration are additive, maximin, and augmented operators while the risk preferences are classified as risk-averse, risk-taking, and risk-neutral ones. The suitabilities of aggregation operators and risk preferences of decision makers are analyzed by a statistical technique, considering the average and the lowest satisfaction levels of the supplier selection criteria, based on numerical examples. Analysis results reveal that decision makers with different risk preferences will prefer only some aggregation operators and models. Moreover, a particular aggregation operator and model may generate a dominated solution for some situations. Thus, it should be applied with caution.

scholarly journals Risk-taking in adversarial games: What can 1 billion online chess games tell us?

2021 ◽  
Author(s):  
Cameron Holdaway ◽  
Edward Vul
Keyword(s):  
Decision Making ◽  
Risk Taking ◽  
Risk Preferences ◽  
The Other ◽  
Human Risk ◽  
State Dependent ◽  
The World ◽  
Chess Game ◽  
Risk Taking Behavior ◽  
Novel Algorithm

Humans are social beings, and most of our decisions are influenced by considerations of how others will respond. Whether in poker or political negotiations, the riskiness of a decision is often determined by the variance of the other party’s possible responses. Such socially-contingent decisions can be framed in terms of adversarial games, which differ from other risky situations such as lotteries because the risk arises from uncertainty about the opponent’s decisions, and not some independent stochasticity in the world. We use chess as a lens through which we can study human risk-taking behavior in adversarial decision making. We develop a novel algorithm for calculating the riskiness of each move in a chess game, and apply it to data from over 1 billion online chess games. We find that players not only exhibit state-dependent risk preferences, but also change their risk-taking strategy depending on their opponent, and that this effect differs in experts and novices.

scholarly journals Violence and Risk Preference: Experimental Evidence from Afghanistan

2014 ◽  
Vol 104 (1) ◽  
pp. 123-148 ◽  
Author(s):  
Michael Callen ◽  
Mohammad Isaqzadeh ◽  
James D. Long ◽  
Charles Sprenger
Keyword(s):  
Experimental Evidence ◽  
Expected Utility ◽  
Risk Taking ◽  
Risk Preferences ◽  
Risk Preference ◽  
Economic Risk ◽  
Experimental Procedure ◽  
Specific Preference ◽  
The Relationship

We investigate the relationship between violence and economic risk preferences in Afghanistan combining: (i) a two-part experimental procedure identifying risk preferences, violations of Expected Utility, and specific preferences for certainty; (ii) controlled recollection of fear based on established methods from psychology; and (iii) administrative violence data from precisely geocoded military records. We document a specific preference for certainty in violation of Expected Utility. The preference for certainty, which we term a Certainty Premium, is exacerbated by the combination of violent exposure and controlled fearful recollections. The results have implications for risk taking and are potentially actionable for policymakers and marketers. (JEL A12, C91, D12, D74, D81, O12, O17)

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