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Beyond money: Risk preferences across both economic and non-economic contexts predict financial decisions
Reeck, Crystal Mullette-Gillman, O'Dhaniel A. McLaurin, R. Edward Huettel, Scott A.
Reeck, Crystal
Mullette-Gillman, O'Dhaniel A.
McLaurin, R. Edward
Huettel, Scott A.
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Journal article
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2022-12-16
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Marketing
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http://dx.doi.org/10.1371/journal.pone.0279125
Abstract
Important decisions about risk occur in wide-ranging contexts, from investing to healthcare. While an underlying, domain-general risk attitude has been identified across contexts, it remains unclear what role it plays in shaping behavior relative to more domain-specific risk attitudes. Clarifying the relationship between domain-general and domain-specific risk attitudes would inform decision-making theories and the construction of decision aids. The present research assessed the relative contribution of domain-general and domain-specific risk attitudes to financial risk taking. We examined risk attitudes across different decision domains, as revealed through a well-validated measure, the Domain-Specific Risk-Taking Scale (DOSPERT). Confirmatory factor analysis indicated that a domain-general risk attitude shaped responses across multiple domains, and structural equation modeling showed that this domain-general risk attitude predicted observed behavioral risk premiums in a financial decision-making task better than domain-specific financial risk attitudes. Thus, assessments of risk attitudes that include both economic and non-economic domains improve predictions of financial risk taking due to the enhanced insight they provide into underlying, domain-general risk preferences.
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Reeck C, Mullette-Gillman OA, McLaurin RE, Huettel SA (2022) Beyond money: Risk preferences across both economic and non-economic contexts predict financial decisions. PLoS ONE 17(12): e0279125. https://doi.org/10.1371/journal.pone.0279125
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Public Library of Science (PLoS)
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PLoS ONE, Vol. 17
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