Joanna Sokołowska
VIOLATIONS IF THE EXPECTATION PRINCIPLE IN RISK JUDGMENT: AN EMPIRE PROOF (PART 1)

In two experiments risk judgment for a set of descriptions of risky investments were collected from managers and students in Poland. Using the approach similar to this proposed by Keller, Sarin and Weber (1986), it has been investigated whether actual risk rates conform with the multiplication and addition properties as well as with the independence conditions required by the expectation principle. Risk judgments of majority of manager and students have conformed with the multiplication and addition properties but they have violated the double independence condition. Thus, one may conclude that the models of expected risk do not describe accurately risk perception. So, in part 2 of this article, a dimensional model of perceived risk is proposed, as a more accurate descriptive model of perceived risk.
Autor: Ewelina Soszyńska
Ostatnia aktualizacja: 17.03.2007, godz. 11:22 - Ewelina Soszyńska