Risk-Seeking in Utilitarian Vs. Hedonic Domain: Implications For the Prospect Theory Value Function

Jae-Eun Namkoong, University of Texas at Austin, USA
Raj Raghunathan, University of Texas at Austin, USA
Authors find that people are willing to take more risk in hedonic (vs. utilitarian) consumption situations. Across a variety of contexts, participants chose between a riskier option with a higher payoff and a safer option with a lower payoff. Even with the same consumption offering, merely framing it as hedonic (vs. utilitarian) induced more risk-seeking behavior. Chronically promotion (vs. prevention) oriented people were more risk-seeking, only in the hedonic context. The findings have implications for the prospect theory value function in relation to the salience of maximal (vs. minimal) goals in hedonic (vs. utilitarian) contexts.
[ to cite ]:
Jae-Eun Namkoong and Raj Raghunathan (2010) ,"Risk-Seeking in Utilitarian Vs. Hedonic Domain: Implications For the Prospect Theory Value Function", in NA - Advances in Consumer Research Volume 37, eds. Margaret C. Campbell, Jeff Inman, and Rik Pieters, Duluth, MN : Association for Consumer Research, Pages: 161-165 .