Determinants of Risk-Taking: Behavioral and Economic Views

Paul Schoemaker

Journal of Risk and Uncertainty, 1993, vol. 6, issue 1, 49-73

Abstract: The concept of risk-taking is examined from various perspectives: economic, decision theoretic, and psychological. Multiple factors are discussed.as complicating the extraction of any presumed risk-taking propensity from a person's real world behavior. Problem structuring, beliefs, and values (defined here as riskless as opposed to risky utility) may of course underlie differences in risk behavior. In addition, context and process factors can induce variance in risk-bearing. Also, portfolio effects (including cross-sectional, multiattribute, and longitudinal) may greatly complicate the measurement of risk-taking propensity. Lastly, the presence of incomplete markets (via which risks can be partially diversified and traded) may further mask the link between intrinsic and observed risk-taking. This article examines each of these measurement obstacles and sources of variance. Copyright 1993 by Kluwer Academic Publishers

Date: 1993
References: Add references at CitEc
Citations: View citations in EconPapers (34)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jrisku:v:6:y:1993:i:1:p:49-73

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/11166/PS2

Access Statistics for this article

Journal of Risk and Uncertainty is currently edited by W. Kip Viscusi

More articles in Journal of Risk and Uncertainty from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().