Beyond money: Risk preferences across both economic and non-economic contexts predict financial decisions.
Important decisions about risk occur in wide-ranging contexts, from investing to healthcare. While an underlying, domain-general risk attitude has been identified across contexts, it remains unclear what role it plays in shaping behavior relative to more domain-specific risk attitudes. Clarifying th...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Public Library of Science (PLoS)
2022-01-01
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| Series: | PLoS ONE |
| Online Access: | https://doi.org/10.1371/journal.pone.0279125 |
| _version_ | 1827944214777823232 |
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| author | Crystal Reeck O'Dhaniel A Mullette-Gillman R Edward McLaurin Scott A Huettel |
| author_facet | Crystal Reeck O'Dhaniel A Mullette-Gillman R Edward McLaurin Scott A Huettel |
| author_sort | Crystal Reeck |
| collection | DOAJ |
| description | Important decisions about risk occur in wide-ranging contexts, from investing to healthcare. While an underlying, domain-general risk attitude has been identified across contexts, it remains unclear what role it plays in shaping behavior relative to more domain-specific risk attitudes. Clarifying the relationship between domain-general and domain-specific risk attitudes would inform decision-making theories and the construction of decision aids. The present research assessed the relative contribution of domain-general and domain-specific risk attitudes to financial risk taking. We examined risk attitudes across different decision domains, as revealed through a well-validated measure, the Domain-Specific Risk-Taking Scale (DOSPERT). Confirmatory factor analysis indicated that a domain-general risk attitude shaped responses across multiple domains, and structural equation modeling showed that this domain-general risk attitude predicted observed behavioral risk premiums in a financial decision-making task better than domain-specific financial risk attitudes. Thus, assessments of risk attitudes that include both economic and non-economic domains improve predictions of financial risk taking due to the enhanced insight they provide into underlying, domain-general risk preferences. |
| first_indexed | 2024-03-13T10:26:25Z |
| format | Article |
| id | doaj.art-050b1012ce61431f8d35b2d1a33cae06 |
| institution | Directory Open Access Journal |
| issn | 1932-6203 |
| language | English |
| last_indexed | 2024-03-13T10:26:25Z |
| publishDate | 2022-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj.art-050b1012ce61431f8d35b2d1a33cae062023-05-19T05:31:11ZengPublic Library of Science (PLoS)PLoS ONE1932-62032022-01-011712e027912510.1371/journal.pone.0279125Beyond money: Risk preferences across both economic and non-economic contexts predict financial decisions.Crystal ReeckO'Dhaniel A Mullette-GillmanR Edward McLaurinScott A HuettelImportant decisions about risk occur in wide-ranging contexts, from investing to healthcare. While an underlying, domain-general risk attitude has been identified across contexts, it remains unclear what role it plays in shaping behavior relative to more domain-specific risk attitudes. Clarifying the relationship between domain-general and domain-specific risk attitudes would inform decision-making theories and the construction of decision aids. The present research assessed the relative contribution of domain-general and domain-specific risk attitudes to financial risk taking. We examined risk attitudes across different decision domains, as revealed through a well-validated measure, the Domain-Specific Risk-Taking Scale (DOSPERT). Confirmatory factor analysis indicated that a domain-general risk attitude shaped responses across multiple domains, and structural equation modeling showed that this domain-general risk attitude predicted observed behavioral risk premiums in a financial decision-making task better than domain-specific financial risk attitudes. Thus, assessments of risk attitudes that include both economic and non-economic domains improve predictions of financial risk taking due to the enhanced insight they provide into underlying, domain-general risk preferences.https://doi.org/10.1371/journal.pone.0279125 |
| spellingShingle | Crystal Reeck O'Dhaniel A Mullette-Gillman R Edward McLaurin Scott A Huettel Beyond money: Risk preferences across both economic and non-economic contexts predict financial decisions. PLoS ONE |
| title | Beyond money: Risk preferences across both economic and non-economic contexts predict financial decisions. |
| title_full | Beyond money: Risk preferences across both economic and non-economic contexts predict financial decisions. |
| title_fullStr | Beyond money: Risk preferences across both economic and non-economic contexts predict financial decisions. |
| title_full_unstemmed | Beyond money: Risk preferences across both economic and non-economic contexts predict financial decisions. |
| title_short | Beyond money: Risk preferences across both economic and non-economic contexts predict financial decisions. |
| title_sort | beyond money risk preferences across both economic and non economic contexts predict financial decisions |
| url | https://doi.org/10.1371/journal.pone.0279125 |
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