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.
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.
Randy Yang Gao, New York University, USA
Minah Jung, New York University, USA
NA - Advances in Consumer Research Volume 48 | 2020
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