Context Moderates Priming Effects on Financial Risk Taking

Silvio Aldrovandi, Petko Kusev, Tetiana Hill and Ivo Vlaev
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Silvio Aldrovandi: Department of Psychology, Birmingham City University, B4 7BD Birmingham, UK
Petko Kusev: Department of Psychology, Kingston University London, KT1 2EE Kingston upon Thames, UK
Tetiana Hill: Industrial Psychology and Human Factors Group, Cranfield University, MK43 0AL Cranfield, UK
Ivo Vlaev: Warwick Business School, University of Warwick, CV4 7AL Coventry, UK

Risks, 2017, vol. 5, issue 1, 1-11

Abstract: Previous research has shown that risk preferences are sensitive to the financial domain in which they are framed. In the present paper, we explore whether the effect of negative priming on risk taking is moderated by financial context. A total of 120 participants completed questionnaires, where risky choices were framed in six different financial scenarios. Half of the participants were allocated to a negative priming condition. Negative priming reduced risk-seeking behaviour compared to a neutral condition. However, this effect was confined to non-experiential scenarios (i.e., gamble to win, possibility to lose), and not to ‘real world’ financial products (e.g., pension provision). The results call into question the generalisability of priming effects on different financial contexts.

Keywords: priming; context effects; financial risk; risk attitudes (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jrisks:v:5:y:2017:i:1:p:18-:d:92979

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