 Individual differences in a switch from risk-averse preferences for gains to risk-seeking preferences for losses: can personality variables predict the risk preferences?Shu Li and Chang-Jiang Liu Journal of Risk Research, 2008, vol. 11, issue 5, 673-686 Abstract: Individual differences on a framing problem and a reflection problem were examined in light of the Myers--Briggs Type Indicator. The predictions on information processing style, derived from Jungian personality type theory, were tested for the much-discussed framing effect in the Asian Disease Problem and for the reflection effect on which the framing effect presumably depends. As anticipated, the results revealed that business students with higher iNtuition/Extraversion scores and lower Judging score were more likely to be consistently risk-seeking. Conversely, those with higher Sensing/Judging scores were more likely to be consistently risk-averse. Both framing and reflection effects were displayed by those with higher Sensing/Judging scores. However, the second expected result was not supported. Rather, a so-called 'gray hair/clouds' effect (effect name inspired by Medin and Shoben's research in 1988), questioning the validity of risk propensity, was observed and analyzed. The somewhat surprising results and their theoretical and practical implications are discussed. Date: 2008 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:jriskr:v:11:y:2008:i:5:p:673-686 Ordering information: This journal article can be ordered from DOI: 10.1080/13669870802086497 Access Statistics for this article Journal of Risk Research is currently edited by Bryan MacGregor More articles in Journal of Risk Research from Taylor & Francis Journals |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.