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The role of perceived costs and perceived benefits in the relationship between personality and risk-related choices

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  • Emma Soane
  • Chris Dewberry
  • Sunitha Narendran

Abstract

This paper considers how perceptions of costs and benefits can influence the association between personality and risky choice behaviour. We assessed perceptions and behaviours in six domains (ethical; investment; gambling; health and safety; recreational; social) using the DOSPERT and measured personality using the NEO PI-R. Results from structural equation modelling showed that personality had a direct effect on risky choice behaviour in four domains (social, ethical, gambling and recreational risk-taking). In addition, perceived costs and benefits mediated the relations between personality and risk-taking in the five domains (social, ethical, gambling, recreational and investment risk-taking). Evidence for a mechanism that integrates both direct and indirect effects of personality on behaviour is discussed.

Suggested Citation

  • Emma Soane & Chris Dewberry & Sunitha Narendran, 2010. "The role of perceived costs and perceived benefits in the relationship between personality and risk-related choices," Journal of Risk Research, Taylor & Francis Journals, vol. 13(3), pages 303-318, April.
    • Handle: RePEc:taf:jriskr:v:13:y:2010:i:3:p:303-318
    DOI: 10.1080/13669870902987024
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    8. Catherine P. Chou, 2024. "Parental Psychological Control and Risk-Taking among Taiwanese Adolescents and Emerging Adults: Benefit Perception as a Mediator," IJERPH, MDPI, vol. 21(9), pages 1-17, September.
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    10. Yogita Singh & Mohd. Adil & S. M. Imamul Haque, 2023. "Personality traits and behaviour biases: the moderating role of risk-tolerance," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(4), pages 3549-3573, August.
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    12. Yiyun Shou & Joel Olney, 2020. "Assessing a domain-specific risk-taking construct: A meta-analysis of reliability of the DOSPERT scale," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 15(1), pages 112-134, January.

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