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 MoreFeatured
P6. Marginal Cost Consideration
Ethan Pew, Stony Brook University
Hyunhwan Lee, University of Miami, USA
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
Featured
R13. Brand Humanization: Applying Two Dimensions of Humanness to Brand
Mycah L Harrold, Washington State University, USA
Andrew Perkins, Washington State University, USA