Having Control Over and Above Situations: The Influence of Elevated Viewpoints on Risk Taking

2019 ◽  
Vol 56 (2) ◽  
pp. 230-244
Author(s):  
Ata Jami

This article examines how consumers’ exposure to the viewpoint of high versus low vertical position changes their risk-taking behavior. The author proposes that consumers’ views of scenery from a high physical elevation induce an illusory sense of control, which in turn intensifies risk taking. Multiple studies show that exposure to the viewpoint of high vertical positions increases risk taking in both laboratory settings (Studies 1a, 1b, and 1c) and real settings (Study 4). In addition, the author demonstrates that an illusory sense of control mediates the effect of an elevated viewpoint on risk taking (Study 2) and that the effect of elevation on risk taking is attenuated when people use a low-level mental construal to process visual information (Study 3).

Author(s):  
Thomas Plieger ◽  
Thomas Grünhage ◽  
Éilish Duke ◽  
Martin Reuter

Abstract. Gender and personality traits influence risk proneness in the context of financial decisions. However, most studies on this topic have relied on either self-report data or on artificial measures of financial risk-taking behavior. Our study aimed to identify relevant trading behaviors and personal characteristics related to trading success. N = 108 Caucasians took part in a three-week stock market simulation paradigm, in which they traded shares of eight fictional companies that differed in issue price, volatility, and outcome. Participants also completed questionnaires measuring personality, risk-taking behavior, and life stress. Our model showed that being male and scoring high on self-directedness led to more risky financial behavior, which in turn positively predicted success in the stock market simulation. The total model explained 39% of the variance in trading success, indicating a role for other factors in influencing trading behavior. Future studies should try to enrich our model to get a more accurate impression of the associations between individual characteristics and financially successful behavior in context of stock trading.


2014 ◽  
Author(s):  
Ari B. Deutsch ◽  
Michael Koren ◽  
Rachel Moody

2012 ◽  
Author(s):  
K. Bryant Smalley ◽  
Jacob C. Warren ◽  
Lisa Watson-Johnson ◽  
Nikki Barefoot ◽  
Sean Fowler

2010 ◽  
Author(s):  
Stacy Simonsen ◽  
Krista Fritson ◽  
Katharine A. Mcintyre ◽  
Shawna Mowrer

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