Context Moderates Priming Effects on Financial Risk Taking

Silvio Aldrovandi; Petko Kusev; Tetiana Hill; Ivo Vlaev

doi:10.3390/risks5010018

Context Moderates Priming Effects on Financial Risk Taking

Silvio Aldrovandi, Petko Kusev, Tetiana Hill, Ivo Vlaev

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

3 Citations (Scopus)

Abstract

Previous research has shown that risk preferences are sensitive to the financial domain in which they are framed. In the present paper, we explore whether the effect of negative priming on risk taking is moderated by financial context. A total of 120 participants completed questionnaires, where risky choices were framed in six different financial scenarios. Half of the participants were allocated to a negative priming condition. Negative priming reduced risk-seeking behaviour compared to a neutral condition. However, this effect was confined to non-experiential scenarios (i.e., gamble to win, possibility to lose), and not to ‘real world’ financial products (e.g., pension provision). The results call into question the generalisability of priming effects on different financial contexts.

Original language	English
Article number	18
Number of pages	11
Journal	Risks
Volume	5
Issue number	1
DOIs	https://doi.org/10.3390/risks5010018
Publication status	Published - 14 Mar 2017
Externally published	Yes

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title = "Context Moderates Priming Effects on Financial Risk Taking",

abstract = "Previous research has shown that risk preferences are sensitive to the financial domain in which they are framed. In the present paper, we explore whether the effect of negative priming on risk taking is moderated by financial context. A total of 120 participants completed questionnaires, where risky choices were framed in six different financial scenarios. Half of the participants were allocated to a negative priming condition. Negative priming reduced risk-seeking behaviour compared to a neutral condition. However, this effect was confined to non-experiential scenarios (i.e., gamble to win, possibility to lose), and not to {\textquoteleft}real world{\textquoteright} financial products (e.g., pension provision). The results call into question the generalisability of priming effects on different financial contexts.",

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author = "Silvio Aldrovandi and Petko Kusev and Tetiana Hill and Ivo Vlaev",

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AU - Aldrovandi, Silvio

AU - Kusev, Petko

AU - Hill, Tetiana

AU - Vlaev, Ivo

PY - 2017/3/14

Y1 - 2017/3/14

N2 - Previous research has shown that risk preferences are sensitive to the financial domain in which they are framed. In the present paper, we explore whether the effect of negative priming on risk taking is moderated by financial context. A total of 120 participants completed questionnaires, where risky choices were framed in six different financial scenarios. Half of the participants were allocated to a negative priming condition. Negative priming reduced risk-seeking behaviour compared to a neutral condition. However, this effect was confined to non-experiential scenarios (i.e., gamble to win, possibility to lose), and not to ‘real world’ financial products (e.g., pension provision). The results call into question the generalisability of priming effects on different financial contexts.

AB - Previous research has shown that risk preferences are sensitive to the financial domain in which they are framed. In the present paper, we explore whether the effect of negative priming on risk taking is moderated by financial context. A total of 120 participants completed questionnaires, where risky choices were framed in six different financial scenarios. Half of the participants were allocated to a negative priming condition. Negative priming reduced risk-seeking behaviour compared to a neutral condition. However, this effect was confined to non-experiential scenarios (i.e., gamble to win, possibility to lose), and not to ‘real world’ financial products (e.g., pension provision). The results call into question the generalisability of priming effects on different financial contexts.

KW - Priming

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KW - Financial risk

KW - Risk attitudes

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JO - Risks

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SN - 2227-9091

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Context Moderates Priming Effects on Financial Risk Taking

Abstract

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