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Context Moderates Priming Effects on Financial Risk Taking

Author

Listed:
  • Silvio Aldrovandi

    () (Department of Psychology, Birmingham City University, B4 7BD Birmingham, UK)

  • Petko Kusev

    () (Department of Psychology, Kingston University London, KT1 2EE Kingston upon Thames, UK)

  • Tetiana Hill

    () (Industrial Psychology and Human Factors Group, Cranfield University, MK43 0AL Cranfield, UK)

  • Ivo Vlaev

    () (Warwick Business School, University of Warwick, CV4 7AL Coventry, UK)

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.

Suggested Citation

  • Silvio Aldrovandi & Petko Kusev & Tetiana Hill & Ivo Vlaev, 2017. "Context Moderates Priming Effects on Financial Risk Taking," Risks, MDPI, Open Access Journal, vol. 5(1), pages 1-11, March.
  • Handle: RePEc:gam:jrisks:v:5:y:2017:i:1:p:18-:d:92979
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    priming; context effects; financial risk; risk attitudes;

    JEL classification:

    • C - Mathematical and Quantitative Methods
    • G0 - Financial Economics - - General
    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services
    • G3 - Financial Economics - - Corporate Finance and Governance
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • K2 - Law and Economics - - Regulation and Business Law

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