Sign up & Download
Sign in

Risk aversion and physical prowess: Prediction, choice and bias

by Sheryl Ball, Catherine C. Eckel, Maria Heracleous
Journal of Risk and Uncertainty ()

Abstract

This paper reports on experiments where individuals are asked to make risky decisions for themselves, and to predict the risky decisions of others. Prior research shows that people predict women to be more risk averse than men, a result we confirm. We investigate whether differences in physical prowess underlie actual and perceived gender differences, a hypothesis suggested by both evolutionary and economic theories. Overall we find that perceptions of others risk attitudes reflect stereotypes about gender and strength but tend to exaggerate the underlying relationships. Physically stronger and taller people and those perceived as attractive are predicted to be more risk tolerant, while women are perceived to be more risk averse. The impact of gender and physical prowess measures on actual gamble choices is much weaker. Sources of prediction bias are examined, showing that specific characteristics of the target and predictor lead to systematic over-prediction or under-prediction of risk aversion.

Cite this document (BETA)

Readership Statistics

26 Readers on Mendeley
by Discipline
 
 
 
by Academic Status
 
35% Ph.D. Student
 
19% Student (Master)
 
12% Student (Bachelor)
by Country
 
4% Switzerland
 
4% Australia
 
4% Spain

Sign up today - FREE

Mendeley saves you time finding and organizing research. Learn more

  • All your research in one place
  • Add and import papers easily
  • Access it anywhere, anytime

Start using Mendeley in seconds!

Already have an account? Sign in