Consumers Are (Relatively) Risk Seeking in the Domain of Error

We find that consumers make riskier choices when gambles have a prediction component (e.g. betting on an outcome) in addition to monetary consequences (e.g. 50% chance of $2). These results help to explain consumers’ inconsistent risk preferences across contexts (e.g. insurance, gambling), and suggest manipulations of consumers’ tolerance for risk.



Citation:

Berkeley Jay Dietvorst and Lin Fei (2020) ,"Consumers Are (Relatively) Risk Seeking in the Domain of Error", in NA - Advances in Consumer Research Volume 48, eds. Jennifer Argo, Tina M. Lowrey, and Hope Jensen Schau, Duluth, MN : Association for Consumer Research, Pages: 1091-1095.

Authors

Berkeley Jay Dietvorst, University of Chicago, USA
Lin Fei, University of Chicago, USA



Volume

NA - Advances in Consumer Research Volume 48 | 2020



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