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Risk as Value: Combining Affect and Analysis in Risk Judgments

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  • Melissa L. Finucane
  • Joan L. Holup

Abstract

Studies of public perceptions of hazardous activities and technologies include a wide range of approaches. One approach—“risk-as-analysis”—emph asizes the human capacity for analytic deliberation. A second approach—“risk-as-feelings”—emph asizes the tendency for people to rely on affective reactions. In this paper we expand and link these approaches by adopting a “risk-as-value” model, emphasizing that responses to risk result from a combination of analysis and affect that motivates individuals and groups to achieve a particular way of life. Derived from dual-process theories, the risk-as-value model implies that differences in perceived risk may arise from differences in the analytic evaluation of a risk, differences in the affective evaluation of a risk, or the way these evaluations are combined. We discuss the goals of dual processes in comprehensively governing the valuation of risk information in order to achieve desirable outcomes. We highlight the importance of model-based research and the need for researchers to look for converging evidence using multiple dependent measures and methods. Implications for risk communication are discussed.

Suggested Citation

  • Melissa L. Finucane & Joan L. Holup, 2006. "Risk as Value: Combining Affect and Analysis in Risk Judgments," Journal of Risk Research, Taylor & Francis Journals, vol. 9(2), pages 141-164, March.
  • Handle: RePEc:taf:jriskr:v:9:y:2006:i:2:p:141-164
    DOI: 10.1080/13669870500166930
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    4. Sierra, Jeremy J. & Jillapalli, Ravi K. & Badrinarayanan, Vishag A., 2013. "Determinants of a lasting purchase: The case of the tattoo patron," Journal of Retailing and Consumer Services, Elsevier, vol. 20(4), pages 389-399.
    5. Olsen, Robert A., 2008. "Trust as risk and the foundation of investment value," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2189-2200, December.
    6. Robert A. Olsen, 2010. "Toward a theory of behavioral finance: implications from the natural sciences," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 2(2), pages 100-128, June.
    7. Sierra, Jeremy J. & Taute, Harry A. & Heiser, Robert S., 2012. "Explaining NFL fans' purchase intentions for revered and reviled teams: A dual-process perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 19(3), pages 332-342.
    8. Yixin Chen & Xinchuan Liu, 2021. "How Do Environmental News and the Under the Dome Documentary Influence Air-Pollution Knowledge and Risk Perception Among Beijing Residents?," SAGE Open, , vol. 11(2), pages 21582440211, May.
    9. Soane, Emma & Dewberry, Chris & Narendran, Sunitha, 2010. "The role of perceived costs and perceived benefits in the relationship between personality and risk-related choices," LSE Research Online Documents on Economics 28353, London School of Economics and Political Science, LSE Library.
    10. Sverre Kjetil Rød & Carl Botan & Are Holen, 2012. "Risk communication and worried publics in an imminent rockslide and tsunami situation," Journal of Risk Research, Taylor & Francis Journals, vol. 15(6), pages 645-654, June.
    11. Angela Bearth & Linda Miesler & Michael Siegrist, 2017. "Consumers’ Risk Perception of Household Cleaning and Washing Products," Risk Analysis, John Wiley & Sons, vol. 37(4), pages 647-660, April.
    12. Verteramo Chiu, Leslie J. & Turvey, Calum G., 2015. "Perception and Action in a Conflict Zone: a Study of Rural Economy and Rural Life amidst Narcos in Northeastern Mexico," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205447, Agricultural and Applied Economics Association.
    13. Matt Twyman & Nigel Harvey & Clare Harries, 2008. "Trust in motives, trust in competence: Separate factors determining the effectiveness of risk communication," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 3, pages 111-120, January.
    14. 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.
    15. Bekiros, Stelios & Jlassi, Mouna & Naoui, Kamel & Uddin, Gazi Salah, 2017. "The asymmetric relationship between returns and implied volatility: Evidence from global stock markets," Journal of Financial Stability, Elsevier, vol. 30(C), pages 156-174.
    16. Christoph M. Rheinberger, 2010. "Experimental Evidence Against the Paradigm of Mortality Risk Aversion," Risk Analysis, John Wiley & Sons, vol. 30(4), pages 590-604, April.

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