Cross-National Differences in Risk Preference and Lay Predictions
Journal of Behavioral Decision Making, Vol. 12, 1999
15 Pages Posted: 11 Oct 2006
Abstract
This research explores whether there are systematic cross-national differences in choice-inferred risk preferences between Americans and Chinese. Study 1 found(a) that the Chinese were signi®cantly more risk seeking than the Americans, yet(b) that both nationals predicted exactly the opposite Ð that the Americans wouldbe more risk seeking. Study 2 compared Americans' and Chinese risk preferences in investment, medical and academic decisions, and found that Chinese were more risk seeking than Americans only in the investment domain and not in the other domains. These results are explained in terms of a cushion hypothesis, which suggests people in a collectivist society, such as China, are more likely to receive fnancial help if they are in need (i.e. they could be cushioned if they fell), and consequently, they are less risk averse than those in an individualistic society such as the USA.
Keywords: risk preference, risk attitude, cultural difference, China
JEL Classification: D81, D11, D12, D91
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Perceived Risk Attitudes: Relating Risk Perception to Risky Choice
By Elke U. Weber and Richard A Milliman
-
A Domain-Specific Risk-Attitude Scale: Measuring Risk Perceptions and Risk Behaviors
By Elke U. Weber, Ann-renee Blais, ...
-
By Christopher K. Hsee and Elke U. Weber
-
A Fundamental Prediction Error: Self-Others Discrepancies in Risk Preference
By Christopher K. Hsee and Elke U. Weber
-
By Elke U. Weber, Sharoni Shafir, ...
-
Assessing the Construct Validity of Risk Attitude
By Joost M. E. Pennings and A. Smidts
-
By Elke U. Weber and Christopher K. Hsee
-
A Theory of Perceived Risk and Attractiveness
By Elke U. Weber, Carolyn Anderson, ...