Effects of Type of Payoff and Instructions on Individual Risk-Taking Behavior

1982 ◽  
Vol 51 (3) ◽  
pp. 855-860 ◽  
Author(s):  
Richard T. Ettenson ◽  
Richard C. Coughlin
Keyword(s):  
Risk Taking ◽  
The Other ◽  
Individual Risk ◽  
Probability Level ◽  
Real Money ◽  
Real Risk ◽  
Probability Of Success ◽  
Risk Taking Behavior

32 subjects were presented 4 items involving decisions either to take a certain amount of money or select a probability level for winning a larger amount. In a 2 × 2 design, subjects either made these decisions hypothetically or actually played out their choices for money. For half of each group, the items described a fixed payoff regardless of the probability level selected, while for the other half there were variable payoffs where the amount won increased as the probability of success decreased. Data indicated that subjects were more conservative when playing for real money with a fixed payoff but not when there was a variable payoff. These results suggest that the presence of conservatism in real risk-taking situations may be a function of the type of payoff.

Financial risk-taking related to individual risk preference, social comparison and competition

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tommy Gärling ◽  
Dawei Fang ◽  
Martin Holmen ◽  
Patrik Michaelsen
Keyword(s):  
Social Comparison ◽  
Risk Taking ◽  
Financial Risk ◽  
Risk Preference ◽  
The Other ◽  
Individual Risk ◽  
Additional Increase ◽  
Content Type ◽  
Market Experiments ◽  
Increases In Risk

PurposeThe purpose of this paper is to investigate how social comparison and motivation to compete account for elevated risk-taking in fund management corroborated by asset market experiments when performance depends on rank-based incentives.Design/methodology/approachIn two laboratory experiments, university students (n1 = 240/n2 = 120) make choices between risky and certain outcomes of hypothetical sums of money. Both experiments investigate in which direction risky choices in an individual condition (individual risk preference) are shifted when participants compare their performance to another participant's performance (social comparison), being instructed or not to outperform the other (incentive to compete).FindingsIn the absence of incentives to compete, participants tend to minimize the differences between expected outcomes to themselves and to the other, but when provided with incentives to compete, they tend to maximize these differences. An independent additional increase in risk-taking is observed when participants are provided with incentives to compete.Originality/valueOriginal findings include that social comparison does not evoke motivation to compete unless incentives are offered and that increases in risk-taking depend both on what the other chooses and the incentives.

Realism and Risk Taking

1974 ◽  
Vol 34 (3) ◽  
pp. 827-829 ◽  
Author(s):  
Terence Lafferty ◽  
Kenneth L. Higbee
Keyword(s):  
Risk Taking ◽  
Real Risk ◽  
Risk Taking Behavior

Ss made decisions on a questionnaire for real payoffs and for hypothetical payoffs. They tended to be less risky when their decisions were made for real consequences than when their decisions were hypothetical, suggesting that one should be cautious in predicting real risk-taking behavior from measures of hypothetical risk.

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 Spinal Cord Injury Causes Prominent Tau Pathology Associated with Brain Post-Injury Sequela

2021 ◽  
Author(s):  
Elnaz Nakhjiri ◽  
Shaqayeq Roqanian ◽  
Hamid Soltani Zangbar ◽  
Manuchehr Seyedi Vafaee ◽  
Daryoush Mohammadnejad ◽  
...  
Keyword(s):  
Spinal Cord ◽  
Spinal Cord Injury ◽  
Mouse Models ◽  
Risk Taking ◽  
Neuronal Cell ◽  
The Other ◽  
Tau Pathology ◽  
Brain Areas ◽  
Cord Injury ◽  
Risk Taking Behavior

Abstract Spinal cord injury (SCI) can lead to neurological impairment with significant functional and cognitive deficits. It is obvious that SCI causes focal neurodegeneration that gradually expands to the other cord areas. On the other hand, it is clear that traumatic brain injuries result in tau protein pathology and profound neurodegeneration. Tau is a microtubule-associated protein, which is highly expressed in neurons, and its abnormalities result in neuronal cell death. Moreover, it is clear that tau pathology spreads in various brain areas upon trauma. Therefore, we herein examined tau pathology in the spinal cord as well as brain samples at various time-points in severe SCI mouse models. We examined the effects of severe SCI on locomotor function, spatial memory, and anxiety/risk-taking behavior. We found a gradual increased tau pathology in the spinal cord as well as brain areas; confirmed by immunostaining and immunoblotting. Moreover, we studied the brain samples with electron microscopy and observed disrupted mitochondria and microtubule structure upon SCI. SCI caused motor dysfunction, memory impairment, and abnormal risk-taking behavior. Importantly, pathogenic cis P-tau elimination with systemic administration of respective monoclonal antibody restored SCI-related pathological and functional consequences. Thus, our finding suggests that SCI results in profound tauopathy, which spreads to brain areas, reflecting brain dysfunction. Moreover, tau immunotherapy with anti-cis P-tau antibody could suppress the pathogenic outcomes in the SCI mouse models, which would have profound clinical implications in the SCI patients.

Predicting Stock Market Performance

2020 ◽  
pp. 1-10
Author(s):  
Thomas Plieger ◽  
Thomas Grünhage ◽  
Éilish Duke ◽  
Martin Reuter
Keyword(s):  
Stock Market ◽  
Risk Taking ◽  
Life Stress ◽  
Price Volatility ◽  
Individual Characteristics ◽  
Self Report ◽  
Financial Behavior ◽  
Market Simulation ◽  
Stock Market Performance ◽  
Risk Taking Behavior

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.

Risk-Taking Behavior Associated With Affective States

2014 ◽  
Author(s):  
Ari B. Deutsch ◽  
Michael Koren ◽  
Rachel Moody
Keyword(s):  
Risk Taking ◽  
Affective States ◽  
Risk Taking Behavior
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