Risk Aversion Or Profit Seeking? Explaining the Uncertainty Effect

Results from six studies (N = 4430) suggest that people are willing to pay less for an uncertain prospect than for its worst outcome, not because they are inherently averse to uncertainty, but because they want to exploit the uncertain offer by paying little.



Citation:

Randy Yang Gao and Minah Jung (2020) ,"Risk Aversion Or Profit Seeking? Explaining the Uncertainty Effect", 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: 886-890.

Authors

Randy Yang Gao, New York University, USA
Minah Jung, New York University, USA



Volume

NA - Advances in Consumer Research Volume 48 | 2020



Share Proceeding

Featured papers

See More

Featured

P6. Marginal Cost Consideration

Ethan Pew, Stony Brook University
Hyunhwan Lee, University of Miami, USA

Read More

Featured

J3. You Think I’m Yours but, Trust Me, I’m Not: How Consumers Value Dogs and Cats

Colleen Patricia Kirk, New York Institute of Technology
Samantha Renee Kirk, Boston College, USA

Read More

Featured

R13. Brand Humanization: Applying Two Dimensions of Humanness to Brand

Mycah L Harrold, Washington State University, USA
Andrew Perkins, Washington State University, USA

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.