Investment consultants or agents may predict that their competitors are more risk seeking
, but make more conservative decisions for their clients.
As Holt and Laury (2002) find evidence that individuals tend to be more risk seeking
when they face hypothetical choices, we classified as risk averse the 90 participants who chose option B for the first time in round 6 or later.
Such interviews may offer more evidence as to the levels of risk seeking
and risk aversion among executives.
A and C are risk seeking
choices while B and D are risk averse options.
142) Hence, people will tend to exhibit risk aversion when choosing among fair outcomes but risk seeking
when facing unfair ones.
Condition 2: Who is risk seeking
on the domain of losses (Kahneman and Teversky, 1979).
Practically, our findings suggest that risk seeking
tendencies inherent in potential loss situations should be explicitly recognized by audit partners and audit firm management committees so that this human tendency toward risk seeking
in potential loss situations can be managed appropriately.
In contrast, proactiveness (hypothesis 2), competitive aggressiveness (hypothesis 3), and risk seeking
(hypothesis 4) were not supported as significant individual contributors to performance: For hypothesis 2, proactiveness (t = -.
1], % 2 quartile 8,8039 4,4622 3 quartile 12,3244 4,7375 maximum 22,0079 4,8875 Reliability Target portfolio characteristics level for the average risk seeking
This 6-item scale was designed specifically to measure risk seeking
and aversion with regard to investment.
For example, contrary to popular insurance for earthquakes--a vivid and dreaded, but low likelihood event --the higher likelihood, but more familiar crop loss evokes enough risk seeking
behaviour to render insurance programs unsustainable.
Dr Joy Bringer, sports psychologist at the Sports Council for Wales has pulled together the original research, published by the Physician and Sports Medicine Journal, to draw up personality profiles, looking at six key areas - sociability, spontaneity, motivation, aggression, competition, mental focus and risk seeking