This literature indicates that options may indeed generate incentives for risk taking, but that option compensation does not strictly increase
risk seeking in all settings (Carpenter 2000; Tian 2004).
Firms which were
risk seeking were more closely quasi-integrated at a given level of asset specificity than were risk averse firms.
Second, although the participants were inclined to avoid risks in their decision making in the gain condition, the degree of their
risk seeking increased after they repeatedly made choices that offered certainty of gains.
The results of the hierarchical regression analysis of risk preferences of debt show that
risk seeking is a significant predictor of debt behavior.
67% (civil sample)
risk seeking under balance formats suggest that participants had a tendency towards
risk seeking in the absence of positive or negative framing.
Participants were therefore more
risk seeking in distant others (M = 9.
When choosing between a risk-free investment and an annuity contract, the individual will behave
risk seeking and thus choose the annuity.
Playing for peanuts: Why is
risk seeking more common for low-stakes gambles?
The recklessness of the pilot may be more representative of the
risk seeking behaviour of relatively junior year ego-driven commanders," he wrote.
Dr Dennis Lendrem, of the University of Newcastle, said: "Idiotic risks are defined as senseless risks, where the apparent payoff is negligible or non existent, According to 'male idiot theory' (MIT) many of the differences in
risk seeking behaviour, emergency department admissions and mortality may be explained by the observation that men are idiots and do stupid things.
On the other hand, prospect theory predicts that investors would be risk averse in gains and
risk seeking in losses, regardless of their level of wealth.
Blastland and Spiegelhalter present this humorous risk assessment of daily activities through the eyes of several characters ranging from highly risk averse to
risk seeking.
