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The effect of prior outcomes on gender risk-taking differences

Author

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  • Desmond Lam
  • Bernadete Ozorio

Abstract

This study proposed that men are more likely to take greater risk after a win ('house money' effect), while women are more likely to take greater risk after a loss ('escalation of commitment' effect). These effects are, however, moderated by prior experiences in risk-taking and role characteristics. Three distinct groups of 30 subjects (total = 90) each were solicited to play an experimental betting game. The subjects were categorized into risk providers (RP), risk customers (RC), and non-risk customers (NRC). RP are represented by casino executives, RC by leisure life-time casino gamblers, and NRC by non-casino gamblers. On average, RC group was found to take most betting risk. Male RCs were more likely to bet more after a win, while female RCs were more likely to bet more after a loss. NRCs, irrespective of gender, were more likely to bet more after a loss. There were no gender risk-taking differences in prior outcomes in the RP group.

Suggested Citation

  • Desmond Lam & Bernadete Ozorio, 2013. "The effect of prior outcomes on gender risk-taking differences," Journal of Risk Research, Taylor & Francis Journals, vol. 16(7), pages 791-802, August.
    • Handle: RePEc:taf:jriskr:v:16:y:2013:i:7:p:791-802
    DOI: 10.1080/13669877.2012.737824
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    Cited by:

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    2. Fenghua Wen & Zhifang He & Xu Gong & Aiming Liu, 2014. "Investors’ Risk Preference Characteristics Based on Different Reference Point," Discrete Dynamics in Nature and Society, Hindawi, vol. 2014, pages 1-9, April.
    3. F. T. T. Phua, 2017. "Does the built-environment industry attract risk-taking individuals?," Construction Management and Economics, Taylor & Francis Journals, vol. 35(4), pages 207-217, April.
    4. Deaves, Richard & Kluger, Brian & Miele, Jennifer, 2018. "An exploratory experimental analysis of path-dependent investment behaviors," Journal of Economic Psychology, Elsevier, vol. 67(C), pages 47-65.
    5. Nite, Calvin & Hutchinson, Michael & Bouchet, Adrien, 2019. "Toward an institutional theory of escalation of commitment within sport management: A review and future directions," Sport Management Review, Elsevier, vol. 22(5), pages 571-583.
    6. Katarzyna Sekścińska & Joanna Rudzinska-Wojciechowska, 2021. "How Power Influences Decision-Makers’ Investment Behavior in the Domains of Loss and Gain," IJERPH, MDPI, vol. 18(23), pages 1-13, December.

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