The relative influence of probabilities and payoffs upon perceived risk of a gamble

Abstract

Thirty-two college students rated the “risk” inherent in playing each of 27 gambles. The results indicated that perceived risk was determined primarily by a gamble’s probability of losing. The variance of a gamble had little influence upon its riskiness. The results were contrasted with those of a previous experiment in which Ss rated the attractiveness, rather than the riskiness, of these same bets. © 1967, Psychonomic Press. All rights reserved.