The role of perceived costs and perceived benefits in the relationship between personality and risk-related choices

Emma Soane, Chris Dewberry and Sunitha Narendran

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper considers how perceptions of costs and benefits can influence the association between personality and risky choice behaviour. We assessed perceptions and behaviours in six domains (ethical; investment; gambling; health and safety; recreational; social) using the DOSPERT and measured personality using the NEO PI-R. Results from structural equation modelling showed that personality had a direct effect on risky choice behaviour in four domains (social, ethical, gambling and recreational risk-taking). In addition, perceived costs and benefits mediated the relations between personality and risk-taking in the five domains (social, ethical, gambling, recreational and investment risk-taking). Evidence for a mechanism that integrates both direct and indirect effects of personality on behaviour is discussed.

Keywords: ISI; personality; NEO PI-R; risk; cost; benefit; decision-making (search for similar items in EconPapers)
JEL-codes: J50 L81 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (11)

Published in Journal of Risk Research, 2010, 13(3), pp. 303-318. ISSN: 1366-9877

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