Risk-taking in entrepreneurs, compared to criminals and students: The role of uncertainty and stakes

Klára Faragó, Orhidea Kiss and János Boros

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2008, vol. 37, issue 6, 2231-2241

Abstract: Entrepreneurs', college students' and criminals' risk-taking were compared in hypothetical bet situations. The level of uncertainty and the amount staked were varied in gain and loss situations. Potential profit motivates entrepreneurs to choose higher stakes, expected loss will prompt the avoidance of risk. In profit-making situations, college students' strategies are different: Students' decisions are more influenced by probability factors than by the amount staked. Risk-taking tendency of criminals is higher than that of the other two groups, without applying a consistent strategy in taking risk.

Keywords: Risk-taking; Entrepreneurs; Convicts; Amount; staked; Affect; heuristic (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:37:y:2008:i:6:p:2231-2241

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