Save

The Psychology of Human Risk Preferences and Vulnerability to Scare-Mongers: Experimental Economic Tools for Hypothesis Formulation and Testing

In: Journal of Cognition and Culture
View More View Less
  • 1 Department of Risk Management and Insurance, J. Mack Robinson College of Business, Georgia State University, Center for the Economic Analysis of Risk, J. Mack Robinson College of Business, Georgia State University, School of Economics, University of Cape Town, 35 Broad Street nw, Atlanta, ga 30303, USA
  • | 2 Department of Philosophy, University College Cork, School of Economics, University of Cape Town, Center for the Economic Analysis of Risk, J. Mack Robinson College of Business, Georgia State University, 2–4 Elderwood, College Road, Cork, Ireland
  • | 3 *Corresponding author, e-mail: don.ross931@gmail.com
Download Citation Get Permissions

Access options

Get access to the full article by using one of the access options below.

Institutional Login

Log in with Open Athens, Shibboleth, or your institutional credentials

Login via Institution

Purchase

Buy instant access (PDF download and unlimited online access):

€29.95$34.95

The Internet and social media have opened niches for political exploitation of human dispositions to hyper-alarmed states that amplify perceived threats relative to their objective probabilities of occurrence. Researchers should aim to observe the dynamic “ramping up” of security threat mechanisms under controlled experimental conditions. Such research necessarily begins from a clear model of standard baseline states, and should involve adding treatments to established experimental protocols developed by experimental economists. We review these protocols, which allow for joint estimation of risk preferences and subjective beliefs about probabilities and their distributions. Results we have obtained on such estimates, from populations in various countries, are gathered for comparison. Most people show moderate risk aversion in non-alarmed states. We also find universal heterogeneity in risk preference structures, with substantial sub-samples weighting probabilities in such a way as to display “probability pessimism” (rank dependent utility), while others make risky choices in accordance with expected utility theory.

Content Metrics

All Time Past Year Past 30 Days
Abstract Views 189 44 5
Full Text Views 206 1 0
PDF Views & Downloads 21 1 0