Determinants of risk-taking: Behavioral and economic views

Abelson, R. P. (1985). ?A Variance Explanation Paradox: When a Little is a Lot,?Psychological Bulletin 97, 129?133.

Allais, M. (1953). ?Le comportement de l'homme rationnel devant le risque: Critique des postulates et axioms de l'ecole Americaine,?Econometrica 21, 503?546.

Arrow, K. J. (1971).Essays in the Theory of Risk-Bearing. Chicago: Markham.

Ashby, W. R. (1956).Introduction to Cybernetics. New York: John Wiley.

Atkinson, J. W. (1957). ?Motivational Determinants of Risk-Taking Behavior,?Psychological Review 64, 359?372.

Battalio, R. C., J. H. Kagel, and D. N. MacDonald (1985). ?Animals' Choices over Uncertain Outcomes,?American Economic Review 75, 597?613.

Becker, G. S. (1976).The Economic Approach to Human Behavior. Chicago: University of Chicago Press.

Bell, D. E. (1982). ?Regret in Decision Making Under Uncertainty,?Operations Research 30, 961?981.

Bell, D. E. and H. Raiffa (1982). ?Marginal Value and Intrinsic Risk Aversion.? In H. Kunreuther (ed.),Risk: A Seminar Series. Laxenburg, Austria: International Institute for Applied Systems Analysis, pp. 325?350.

Bentham, J. (1789).Introduction to the Principles of Morals and Legislation, Anchor Press, Doubleday: NY.

Blume, M. E. and I. Friend. (1978)The Changing Role of the Individual Investor. New York: John Wiley & Sons.

Bordley, R. and G. Hazen. (1991). ?SSB and Weighted Linear Utility as Expected Utility with Suspicion,?Management Science 37(4), 396?408.

Bowman, E. H. (1982). ?Risk Seeking by Troubled Firms,?Sloan Management Review 23, 33?42.

Brunswik, E. (1952). ?The Conceptual Framework of Psychology.? InInternational Encyclopedia of Unified Science, Vol. 1, No. 10. Chicago: University of Chicago Press.

Buchsbaum, M. S. (1971). ?Neural Events and the Psychophysical Law,?Science 172, 502.

Cambell, D. T. and D. M. Fisk. ?Convergent and Discriminant Validation by the Multitrait-Multimethod Matrix,?Psychological Bulletin 56, 81?105.

Camerer, C. (1989). ?An Experimental Test of Several Generalized Utility Theories,?Journal of Risk and Uncertainty 2, 61?104.

Camerer, C. (1990). ?Recent Tests of Generalizations of Expected Utility Theory.? In W. Edwards (ed.),Utility: Theories, Measurement and Applications (in press).

Chew, S. H. and L. G. Epstein. (1988). ?The Law of Large Numbers and the Attractiveness of Compound Gambles,?Journal of Risk and Uncertainly 1(1), 25?132.

Cohn, R. A., W. G. Lewellen, and G. G. Schlarbaum. (1975). ?Individual Investor Risk Aversion and Investment Portfolio Composition,?The Journal of Finance 30(2), 605?620.

Coombs, C. H. (1975). ?Portfolio Theory and the Measurement of Risk.? In M. F. Kaplan and S. Schwartz (eds.).Human Judgment and Decision Processes. New York: Academic Press.

Coombs, C. H. and C. S. Avrunin. ?Single-Peaked Functions and the Theory of Preference,?Psychological Review 84, 216?230.

Cooms, C. H. and D. G. Pruitt. (1960). ?Components of Risk in Decision Making: Probability and Variance Preference.,?Journal of Experimental Psychology 60, 256?277.

Copeland, T. E. and F. J. Weston. (1980).Financial Theory and Corporate Policy. Reading, MA: Addison-Wesley.

Crandall, R. W. and J. D. Graham. (1984). ?Automobile Safety Regulation and Offsetting Behavior: Some New Empirical Estimates,?American Economic Association: Papers and Proceedings 74(2), 328?331.

Dawes, R. M., and B. Corrigan. (1974). ?Linear Models in Decision Making,?Psychological Bulletin 81, 97?106.

Dawes, R. M., D. Faust, and P. Meehl. (1989). ?Clinical versus Actuarial Judgment,?Science 243, 1668?73.

Dekel, E. (1986). ?An Axiomatic Characterization of Preferences Under Uncertainty: Weakening the Independence Axiom,?Journal of Economic Theory 40, 304?318.

Dyer, J. S. and R. K. Sarin. (1979). ?Measurable Multiattribute Value Functions,?Operations Research 27, 810?822.

Dyer, J. S. and R. K. Sarin. (1982). ?Relative Risk Aversion,?Management Science 28(8), 875?886.

Edwards, W. (1954). ?Variance Preferences in Gambling,?American Journal of Psychology 67, 441?452.

Einhorn, H. J. and R. M. Hogarth. (1986). ?Decision Making Under Ambiguity,?Journal of Business 59(4) (pt. 2), 5225?5255.

Ellsberg, D. (1961). ?Risk, Ambiguity, and the Savage Axioms,?Quarterly Journal of Economics 75, 643?669.

Evans, L. (1986). ?Risk Homeostasis Theory and Traffic Accident Data,?Risk Analysis 6(1), 81?107.

Fama, E. F. (1976).Foundations of Finance. New York: Basic Books.

Fischhoff, B., P. Slovic, and S. Lichtenstein. (1980). ?Knowing What You Know: Measuring Labile Value.? In T. Wallsten (ed.),Cognitive Processes in Choice and Decision Behavior. Hillsdale, NJ: Erlbaum.

Fishburn, P. C. (1983). ?Transitive Measurable Utility,?Journal of Economic Theory 31, 31?67.

Fishburn, P. C. (1988). ?Expected Utility: An Anniversary and a New Era,?Journal of Risk and Uncertainty 1 (3), 267?284.

Fisher, I. (1965).The Theory of Interest. New York: August M. Kelly. (Reprinted from the 1930 edition.)

Frey, B. S. and B. Heggli. (1989). ?An Ipsative Theory of Business Behavior,?Journal of Economic Psychology 10, 1?20.

Fulker, D., S. Eysenck, and M. Zuckerman. (1980). ?A Genetic and Environmental Analysis of Sensation Seeking,?Journal of Research in Personality 14, 261?281.

Goldstein, W. M. and H. Einhorn. (1987). ?A Theory of Preference Reversals,?Psychological Review 94(2), 236?254.

Hammond, K. R., C. H. McClelland, and J. Mumpower. (1980).Human Judgment and Decision Making: Theories, Methods and Procedures. New York: Praeger.

Harlow, W. V. (1988). ?Economic Preferences and Risk-Aversion: An Alternative Perspective,? working paper, Dept. of Finance and Real Estate, University of Arizona.

Hershey, J. C. and P. J. H. Schoemaker. (1980). ?Risk Taking and Problem Context in the Domain of Losses: An Expected Utility Analysis,?The Journal of Risk and Insurance 47, 111?132.

Hershey, J. C. and P. J. H. Schoemaker. (1985). ?Probability Versus Certainty Equivalence Methods in Utility Measurement: Are They Equivalent??Management Science 31, 1213?1231.

Hicks, J. R. and R. Allen. (1934). ?A Reconsideration of the Theory of Value,?Economica (February), 52?75, 196?219.

Hogarth, R. M. (ed.). (1982). ?Question Framing and Response Consistency.? InNew Directions for Methodology of Social and Behavioral Science. San Francisco: Jossey-Bass.

Jackson, D. N., L. Hourany, and N. J. Vidmar. (1972). ?A Four-Dimensional Interpretation of Risk Taking,?Journal of Personality 40, 483?501.

Johnson, E. J. and J. W. Payne. (1985). ?Effort and Accuracy in Choice,?Management Science 31(4), 395?413.

Johnson, E. J. and D. Schkade. (1989). ?Bias in Utility Assessments: Further Evidence and Explanations,?Management Science 35, 406?424.

Kahneman, D. and A. Tversky. (1979). ?Prospect Theory: An Analysis of Decision Under Risk,?Econometrica 47, 263?291.

Karn, E. (1979). ?On Multivariate Risk Aversion,?Econometrica 47(6), 1391?1401.

Karn, E. (1985).Decision Making Under Uncertainty: The Case of State-Dependent Preferences. Cambridge, MA: Harvard University Press.

Karn, E. and Z. Safra. (1987). ? ?Preference Reversal? and the Observability of Preferences by Experimental Methods,?Econometrica 55, 675?685.

Keeney, R. L. and H. Raiffa. (1976).Decisions with Multiple Objectives: Preferences and Value Tradeoffs. New York: John Wiley.

Keller, L. R. (1985). ?An Empirical Investigation of Relative Risk Aversion,?IEEE Transactions on Systems, Man, and Cybernetics SMC-15(4), 475?482.

Kemper, T. D. (1987). ?How Many Emotions Are There? Wedding the Social and the Autonomic Components,?American Journal of Sociology 93(2), 263?289.

Kenrick, D. and D. Funder. (1988). ?Profiting from Controversy: Lessons from the Person-Situation Debate,?American Psychologist 43(1), 23?34.

Kogan, N. and M. A. Wallach. (1967). ?Risk Taking as a Function of the Situation, the Person, and the Group.? InNew Directions in Psychology, Vol. 3. New York: Holt, Rinehart and Winston, pp. 111?278.

Kogan, N. and M. A. Wallach. (1964).Risk-Taking: A Study in Cognition and Personality. New York: Holt.

Koopmans, T. C. (1972). ?Representation of Preference Orderings Over Time.? In C. B. McGuire and T. R. Radner (eds.).Decision and Organization, Amsterdam: North Holland.

Kreps, D. M. and E. L. Porteus. (1979). ?Temporal von Neumann-Morgenstern and Induced Preferences,?Journal of Economic Theory 20, 81?109.

Kroll, Y., H. Levy, and A. Rapoport. (1988). ?Experimental Tests of the Mean Variance Model for Portfolio Selection,?Organizational Behavior and Human Decision Processes 42, 388?410.

Kunreuther, H., R. Ginsberg, L. Miller, et al. (1978).Disaster Insurance Protection: Public Policy Lessons. New York: John Wiley and Sons.

Langer, E. J. (1975). ?The Illusion of Control,?Journal of Personality and Social Psychology 32(2), 311?328.

Lee, P. N. (1979). ?Has the Mortality of Male Doctors Improved with the Reduction in Their Cigarette Smoking??British Medical Journal 2, 1538?1540.

Lichtenstein, S. (1965). ?Bases for Preferences Among Three-Outcome Bets,?Journal of Experimental Psychology 69, 162?169.

Linville, P. W. (1982). ?The Complexity-Extremity Effect and Age-Based Stereotyping,?Journal of Personality and Social Psychology 42(2), 193?211.

Linville, P. W. and E. E. Jones. (1980). ?Polarized Appraisals of Outgroup Members,?Journal of Personality and Social Psychology 38, 689?703.

Loewenstein, G. (1987). ?Anticipation and the Valuation of Delayed Consumption,?The Economic Journal 97, 666?684.

Loewenstein, G. (1988). ?Frames of Mind in Intertemporal Choice,?Management Science 34, 200?214.

Loomes, G. and S. Sugden. (1982). ?Regret Theory: An Alternative Approach to Rational Choice under Uncertainty,?Economic Journal 92, 805?824.

Lopes, L. L. (1981). ?Decision Making in the Short Run,?Journal of Experimental Psychology: Human Learning and Memory 7(5), 377?385.

Lopes, L. L. (1987). ?Between Hope and Fear: The Psychology of Risk,?Advances in Experimental Social Psychology 20, 255?95.

Lund, A. K. and P. Zador. (1984). ?Mandatory Belt Use and Driver Risk-Taking,?Risk Analysis 4(1), 41?53.

Machina, M. J. (1982). ? ?Expected Utility? Analysis Without the Independence Axiom,?Econometrica 50, 277?323.

Machina, M. J. (1984). ?Temporal Risk and the Nature of Induced Preferences,?Journal of Economic Theory 33, 199?231.

Machina, M. J. (1989). ?Dynamic Consistency and Non-Expected Utility Models of Choice Under Certainty,?Journal of Economic Literature (December), 1622?1668.

MacCrimmon, K. R. and D. A. Wehrung. (1986).Taking Risks: The Management of Uncertainty. The Free Press MacMillan, Inc. NY.

March, J. G. (1978). ?Bounded Rationality, Ambiguity, and the Engineering of Choice,?Bell Journal of Economics 9, 587?608.

March, J. G. (1988). ?Variable Risk Preferences and Adaptive Aspirations,?Journal of Economic Behavior and Organization 9, 5?24.

March, J. G. and Z. Shapira. (1987). ?Managerial Perspectives on Risk and Risk Taking,?Management Science 33(11), 1404?1418.

Markowitz, H. M. (1952). ?Portfolio Selection,?Journal of Finance 1, 77?91.

Marshall, A. (1920).Principles of Economies. London: MacMillan.

Maslow, A. H. (1954).Motivation and Personality. New York: Harper and Row.

McClelland, D. C. (1961).The Achieving Society. Princeton, NJ: Van Nostrand.

McInish, T. H. (1982). ?Individual Investors and Risk-Taking,?Journal of Economic Psychology 2, 125?136.

Merton, R. C. (1971). ?Optimum Consumption and Portfolio Rules,?Journal of Economic Theory 3, 378?418.

Mischel, W. (1968).Personality and Assessment. New York: Wiley.

Mischel, W. (1983). ?Alternatives in the Pursuit of the Predictability and Consistency of Persons,?Journal of Personality 51, 578?604.

Nordquist, G. L. (1985). ?On the Risk-Aversion Comparability of State-Dependent Utility Functions,?Theory and Decision 18, 287?300.

Payne, J. W. (1973). ?Alternative Approaches to Decision Making Under Risk: Moments vs. Risk Dimensions,?Psychological Bulletin 80(6), 493?553.

Payne, J. (1982). ?Contingent Decision Behavior,?Psychological Bulletin 92, 382?402.

Payne, J., J. Bettman, and E. Johnson. (1992). ?Behavioral Decision Theory: A Cognitive Processing Perspective,?Annual Review of Psychology 43, 87?131.

Peltzman, S. (1975). ?The Effects of Automobile Safety Regulation,?Journal of Political Economy 83, 677?725.

Plax, T. G. and L. B. Rosenfeld (1976). ?Correlates of Risky Decision-Making,?Journal of Personality Assessment 40(4).

Pratt, J. W. (1964). ?Risk Aversion in the Small and in the Large,?Econometrica 32, 122?136.

Prelec, D. and G. Loewenstein. (1991). ?Decision Making over Time and under Uncertainty: A Common Approach,?Management Science, 37(7), 770?786.

Quiggin, J. (1991). ?Comparative Statistics for Rank-Dependent Expected Utility Theory,?Journal of Risk and Uncertainty 4(4), 339?350.

Raiffa, H. (1968).Decision Analysis. Reading, MA: Addison-Wesley.

Rapoport, A., R. Zwick, and S. G. Funk. (1988). ?Selection of Portfolios With Risky and Riskless Assets: Experimental Tests of Two Expected Utility Models,?Journal of Economic Psychology 9, 169?194.

Richard, S. F. (1975). ?Multivariate Risk Aversion, Utility Independence and Separable Utility Functions,?Management Science 22(1), 12?21.

Robinson, D. S., J. M. Davis, A. Nies, C. L. Ravaris and D. Sylvester. (1971). ?Relation of Sex and Aging to Monoamine Oxidase Activity of Human Brain, Plasma and Platelets,?Archives of General Psychiatry 24, 536?539.

Roll, R. (1977). ?A Critique of the Asset Pricing Theory's Tests,?Journal of Financial Economics (March), 129?176.

Rubinstein, M. (1976). ?The Strong Case for the Generalized Logarithmic Utility Model as the Premier Model of Financial Markets,?Journal of Finance (May).

Samuelson, P. A. (1963). ?Risk and Uncertainty: A Fallacy of Large Numbers,?Scientia (April?May), 1?6.

Savage, L. J. (1954).The Foundations of Statistics. New York: Wiley.

Schneider, S. L. and L. L. Lopes. (1986). ?Reflection in Preferences Under Risk: Who and When May Suggest Why,?Journal of Experimental Psychology: Human Perception and Performance 12(4), 535?548.

Schoemaker, P. J. H. (1977). ?Experimental Studies on Individual Decision Making Under Risk: An Information Processing Approach,? Ph.D. thesis, Wharton School, University of Pennsylvania, Philadelphia.

Schoemaker, P. J. H. (1982). ?The Expected Utility Model: Its Variants, Purposes, Evidence and Limitations,?Journal of Economic Literature 20, 529?563.

Schoemaker, P. J. H. (1990). ?Are Risk-Attitudes Related Across Payoff Domains and Response Modes??Management Science 36, 1451?63.

Segal, U. (1987). ?The Ellsberg Paradox and Risk Aversion: An Anticipated Utility Approach,?International Economic Review 28, 175?202.

Selden, L. (1978). ?A New Representation of Preferences Over ?Certain x Uncertain? Consumption Pairs: The ?Ordinal Certainty Equivalent? Hypothesis,?Econometrica 46(5), 1045?60.

Shafer, G. (1986). ?Savage Revisited,?Statistical Science 1(4), 463?501.

Siegel, S. (1957). ?Level of Aspiration and Decision Making,?Psychological Review 64, 253?262.

Simon, H. A. (1955). ?A Behavioral Model of Rational Choice,?Quarterly Journal of Economics 69, 99?118.

Sloan, A. P. (1963).My Years with General Motors. New York: Doubleday.

Slovic, P. (1972). ?Information Processing, Situation Specificity, and the Generality of Risk-Taking Behavior,?Journal of Personality and Social Psychology 22(1), 128?134.

Slovic, P. and S. Lichtenstein. (1968). ?The Relative Importance of Probabilities and Payoffs in Risk Taking,?Journal of Experimental Psychology 78.

Slovic, P., and S. Lichtenstein. (1983). ?Preference Reversals: A Broader Perspective,?American Economic Review 73, 596?605.

Smith, A. (1904).The Wealth of Nations. Methuen.

Stigler, G. and G. Becker. (1977). ?De gustibus non est disputandum,?American Economic Review 67(2), 76?90.

Thaler, R. (1985). ?Mental Accounting and Consumer Choice,?Marketing Science 4(3), 199?14.

Torrance, P. and R. Ziller. (1957). ?Risk and Life Experience: Development of a Scale for Measuring Risktaking Tendencies,? Research Report AFPTRC-TN-75-23, Crew Research Laboratory, Air Force Personnel and Training Research Center, Randolf Air Force Base, Texas, February.

Tversky, A. and M. Bar-Hillel. (1983). ?Risk: The Long and the Short,?Journal of Experimental Psychology: Learning, Memory, and Cognition 9, 713?717.

Tversky, A. and D. Kahneman. (1974). ?Judgments Under Uncertainty: Heuristics and Biases,?Science 185, 1124?1131.

Tversky, A. and D. Kahneman. (1981). ?The Framing of Decisions and the Psychology of Choice,?Science 211, 453?458.

Tversky, A. and D. Kahneman. (1986). ?Rational Choice and the Framing of Decisions,?Journal of Business 59(4) (pt. 2), 5251?5284.

Tversky, A., S. Sattath, and P. Slovic. (1988). ?Contingent Weighting In Judgment and Choice,?Psychological Review 95, 371?384.

Viscusi, W. K. (1984). ?The Lulling Effect: The Impact of Child-Resistant Packaging on Aspirin and Analgesic Ingestions,?American Economic Association: Papers and Proceedings 74(2), 324?327.

von Neumann, J. and O. Morgenstern. (1947).Theory of Games and Economic Behavior, 2nd ed. Princeton, NJ: Princeton University Press.

Von Winterfeldt, D., F. H. Barron, and C. W. Fischer. (1980). ?Theoretical and Empirical Relationships Between Risky and Riskless Utility Functions,? Technical report, Social Sciences Research Institute, University of Southern California, Los Angeles, CA.

Wagenaar, W. and G. Keren. (1988). ?Chance and Luck Are Not the Same,Journal of Behavioral Decision Making 1(2), 65?75.

Wehrung, D. A., K. R. MacCrimmon, and K. M. Brothers. (1984). ?Utility Assessment: Domains, Stability, and Equivalence Procedures,?INFOR 22(2), 98?115.

Weinstein, N. D. (1987).Taking Care: Understanding and Encouraging Self-Protective Behavior. Cambridge: Cambridge University Press.

Wilde, G. J. S. (1982a). ?The Theory of Risk Homeostatis: Implications for Safety,?Risk Analysis 2(4), 209?225.

Wilde, G. J. S. (1982b). ?Critical Issues in Risk Homeostatis Theory,?Risk Analysis 2(4), 249?258.

Wilde, G. J. S. (1982c). ?Incentive Systems for Accident-Free and Violation-Free Driving in the General Population,?Ergonomics 25(10), 879?890.

Wilson, P. N. and V. R. Eidman. (1983). ?An Empirical Test of the Interval Approach for Estimating Risk Preferences,?Western Journal of Agricultural Economics 8(2), 170?182.

Winkler, R. L. (1991). ?Ambiguity, Probability, Preference and Decision Analysis,?Journal of Risk and Uncertainty 4(3), 285?298.

Wolf, C. and L. Pohlman. (1983). ?The Recovery of Risk Preferences from Actual Choices,?Econometrica 51 (3), 843?850.

Zuckerman, M. (1984). ?Sensation-Seeking: A Comparative Approach to a Human Trait,?The Behavioral and Brain Sciences 7, 413?471.

Zuckerman, M., J. C. Ballenger, D. C. Jimerson, D. L. Murphy and R. M. Post. (1983). ?A Correlational Test in Humans of the Biological Models of Sensation Seeking, Impulsivity, and Anxiety.? In M. Zuckerman (ed.),Biological Bases of Sensation Seeking, Impulsivity, and Anxiety. Hillsdale, NJ: Lawrence Erlbaum Associates, pp. 229?248.