Axiomatic measures of perceived risk: Some tests and extensions

Elke U. Weber, William P. Bottom

Research output: Contribution to journalArticlepeer-review

70 Scopus citations


The history of axiomatic measurement of perceived risk of unidimensional risky choice alternatives is briefly reviewed. Experiments 1 and 2 present data that distinguish between two general classes of risk functions (those that assume that gain and loss components of an alternative combine additively versus multiplicatively) on empirical grounds. The most viable risk model on the basis of these and other results is described. Experiment 3 presents data that call into question the descriptive adequacy of some of this risk model's assumptions, in particular the expectation principle. Suggestions for possible modifications are made.

Original languageEnglish (US)
Pages (from-to)113-131
Number of pages19
JournalJournal of Behavioral Decision Making
Issue number2
StatePublished - 1989
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • General Decision Sciences
  • Arts and Humanities (miscellaneous)
  • Applied Psychology
  • Sociology and Political Science
  • Strategy and Management


  • Allais paradox
  • Axiomatic measures of risk
  • Perceived risk
  • Reflection effect


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