A descriptive measure of risk

Elke U. Weber

doi:10.1016/0001-6918(88)90006-6

A descriptive measure of risk

Elke U. Weber

Research output: Contribution to journal › Article › peer-review

45 Scopus citations

Abstract

A measure of the perceived riskiness of choice alternatives is introduced which will allow further assessment of the role of perceived risk in preference decisions. The risk function suggested here (CER, for conjoint expected risk) can predict a person's subjective risk judgments for risky choice alternatives (e.g., gambles) on the basis of a small number of easily estimated individual difference parameters. The CER function is shown to be superior to other risk measures previously suggested in its descriptive fit as well as its agreement with qualitative results regarding subjective risk judgments. A caveat against the exclusive use of two-outcome gambles in studies of judgment and decision making under risk is issued.

Original language	English (US)
Pages (from-to)	185-203
Number of pages	19
Journal	Acta Psychologica
Volume	69
Issue number	2
DOIs	https://doi.org/10.1016/0001-6918(88)90006-6
State	Published - Nov 1988
Externally published	Yes

All Science Journal Classification (ASJC) codes

Experimental and Cognitive Psychology
Developmental and Educational Psychology
Arts and Humanities (miscellaneous)

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10.1016/0001-6918(88)90006-6

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title = "A descriptive measure of risk",

abstract = "A measure of the perceived riskiness of choice alternatives is introduced which will allow further assessment of the role of perceived risk in preference decisions. The risk function suggested here (CER, for conjoint expected risk) can predict a person's subjective risk judgments for risky choice alternatives (e.g., gambles) on the basis of a small number of easily estimated individual difference parameters. The CER function is shown to be superior to other risk measures previously suggested in its descriptive fit as well as its agreement with qualitative results regarding subjective risk judgments. A caveat against the exclusive use of two-outcome gambles in studies of judgment and decision making under risk is issued.",

author = "Weber, {Elke U.}",

note = "Funding Information: * Some of the rewlts reported In th> paper fwst appeared In mv Ph D dwertatton subnutted to Harvard Umrerstty The work was supported by a Nattonal Sctence Foundatton Grant IST-7924019 to the Um\erslt\ of Cahforma at Irwne and by a postgraduate fellowshp from the Natural Sciences and Engmeenng Research Council of Canada to the author I would hke to thank R Duncan Lute for many Important comments and dwu>slons Requests for repnnts should be sent IO Elke U Weber Ututersltb of Clucago. Graduate School of Busmess Center for Decwon Research 1101 East 58th Street, Chcago IL 60637 L{\textquoteright}S4",

year = "1988",

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doi = "10.1016/0001-6918(88)90006-6",

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N2 - A measure of the perceived riskiness of choice alternatives is introduced which will allow further assessment of the role of perceived risk in preference decisions. The risk function suggested here (CER, for conjoint expected risk) can predict a person's subjective risk judgments for risky choice alternatives (e.g., gambles) on the basis of a small number of easily estimated individual difference parameters. The CER function is shown to be superior to other risk measures previously suggested in its descriptive fit as well as its agreement with qualitative results regarding subjective risk judgments. A caveat against the exclusive use of two-outcome gambles in studies of judgment and decision making under risk is issued.

AB - A measure of the perceived riskiness of choice alternatives is introduced which will allow further assessment of the role of perceived risk in preference decisions. The risk function suggested here (CER, for conjoint expected risk) can predict a person's subjective risk judgments for risky choice alternatives (e.g., gambles) on the basis of a small number of easily estimated individual difference parameters. The CER function is shown to be superior to other risk measures previously suggested in its descriptive fit as well as its agreement with qualitative results regarding subjective risk judgments. A caveat against the exclusive use of two-outcome gambles in studies of judgment and decision making under risk is issued.

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A descriptive measure of risk

Abstract

All Science Journal Classification (ASJC) codes

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