Context Moderates Priming Effects on Financial Risk Taking

S.  Aldrovandi; P. Kusev; Tetiana Hill; I. Vlaev

doi:10.3390/risks5010018

Context Moderates Priming Effects on Financial Risk Taking

S. Aldrovandi, P. Kusev, Tetiana Hill, I. Vlaev

Hertfordshire Business School

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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
Pages (from-to)	1-11
Journal	Risks
Volume	5
Issue number	1
DOIs	https://doi.org/10.3390/risks5010018
Publication status	Published - 14 Mar 2017

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10.3390/risks5010018Licence: CC BY

risks-05-00018 (1)
© 2017 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).
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Cite this

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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.

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Context Moderates Priming Effects on Financial Risk Taking

Abstract

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