The Psychophysics of Estimated Risk

Priya Raghubir, New York University, USA
Two studies examine how base rates of health risk are psychologically transformed into perceptions of risk for an average person and one’s self. Study 1 examines risk perceptions for 13 causes of death with objective base rates ranging from 1:5 (heart disease) to 1:340,733 (fireworks discharge). We model perceived risk as following a power law where the denominator (N) is raised to an exponent the size of which is contingent on the size of the denominator itself (i.e., endogenously determined). Study 2 examines the moderating effect of visual versus numeric presentation format on risk perceptions.
[ to cite ]:
Priya Raghubir (2010) ,"The Psychophysics of Estimated Risk", in NA - Advances in Consumer Research Volume 37, eds. Margaret C. Campbell, Jeff Inman, and Rik Pieters, Duluth, MN : Association for Consumer Research, Pages: 207-210 .