When Prevention-Oriented Investors Take Greater Risks: Breaking a Confound

Daniel Goldstein, London Business School, UK
Rongrong Zhou, Hong Kong University of Science and Technology, Hong Kong, China
Michel Tuan Pham, Columbia University, USA
Previous research has noted that, in the framework of regulatory focus theory, people with promotion focus tend to be less risk averse, while prevention-oriented individuals tend to be more so. This follows naturally when risk taking is necessary to obtain gains. However, in many natural domains that involve losses, being risk averse can lead to certain loss. We predict and find that in such domains prevention-oriented individuals, surprisingly, take greater risks than promotion-oriented individuals.
[ to cite ]:
Daniel Goldstein, Rongrong Zhou, and Michel Tuan Pham (2010) ,"When Prevention-Oriented Investors Take Greater Risks: Breaking a Confound", in NA - Advances in Consumer Research Volume 37, eds. Margaret C. Campbell, Jeff Inman, and Rik Pieters, Duluth, MN : Association for Consumer Research, Pages: 166-169 .