Between Hope and Fear: The Psychology of Risk.
Abstract
Psychophysical theories of risk (e.g., Bernoullian utility theory, prospect theory) are compared with motivational theories (e.g., those of McClelland and Atkinson). A new theory is proposed that describes risk taking in terms of two factors: Factor 1 is a dispositional variable involving motivation for security risk versus potential risk. This factor distinguishes averse and risk seeking individuals and reflects primarily whether the individual is motivated to avoid bad outcomes or to achieve good outcomes. Factor 2 is a situational variable involving current level of aspiration. In the theory, these two factors are sometimes in correspondence and sometimes in conflict, predicting complex patterns of data. Evidence is presented to support the theory and the relationship of the theory to other concepts (e.g., safety-first, disappointment, regret, emotion, aesthetics) is discussed. Keywords: decision making, motivation.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 1986
- Accession Number
- ADA168207
Entities
People
- Lola L. Lopes