Economics at your fingertips  

A Survey Study of Factors Influencing Risk Taking Behavior in Real World Decisions under Uncertainty

Cristina Rata () and Manel Baucells ()
Additional contact information

No 201033, Working Papers from Fundacion BBVA / BBVA Foundation

Abstract: With the goal of investigating decision making under uncertainty in real world decisions, we conduct a survey requiring 261 subjects to describe recent real life decisions and to answer questions about several dimensions of a decision, including framing, status quo, domain, and type of consequences. The study shows that when real world decisions are framed as choices between a sure outcome and a risky alternativea key prediction of Prospect Theory holds, namely, that a losses framing increases risk taking behavior. The results also provide support for the need to include the domain of a decision as a factor influencing risk taking behavior. Risk attitudes do not vary across the three groups considered and do not depend on whether the type of consequences are monetary or not. While we observe that status quo has some influence in setting the framing, we confirm that framing, and not status quo, is the driver of the risk attitude.

Keywords: Real world decisions; risk taking behavior; framing; domain; type of consequence; status quo. (search for similar items in EconPapers)
Pages: 32
Date: 2006-02
References: Add references at CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link) ... index.jsp?codigo=176
Our link check indicates that this URL is bad, the error code is: 404 Not Found ( [301 Moved Permanently]-->

Related works:
Journal Article: A Survey Study of Factors Influencing Risk-Taking Behavior in Real-World Decisions Under Uncertainty (2006) Downloads
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:

Access Statistics for this paper

More papers in Working Papers from Fundacion BBVA / BBVA Foundation Contact information at EDIRC.
Bibliographic data for series maintained by Fundacion BBVA / BBVA Foundation ().

Page updated 2020-06-30
Handle: RePEc:fbb:wpaper:201033