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A Psychological Study of the Inverse Relationship Between Perceived Risk and Perceived Benefit

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  • Ali Siddiq Alhakami
  • Paul Slovic

Abstract

Judgments of risk and judgments of benefit have been found to be inversely related. Activities or technologies that are judged high in risk tend to be judged low in benefit, and vice versa. In the present study, we examine this inverse relationship in detail, using two measures of relationship between risk and benefit. We find that the inverse relationship is robust and indicative of a confounding of risk and benefit in people's minds. This confounding is linked to a person's overall evaluation of an activity or technology. Theoretical and practical implications of this risk‐benefit confounding are discussed.

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  • Ali Siddiq Alhakami & Paul Slovic, 1994. "A Psychological Study of the Inverse Relationship Between Perceived Risk and Perceived Benefit," Risk Analysis, John Wiley & Sons, vol. 14(6), pages 1085-1096, December.
    • Handle: RePEc:wly:riskan:v:14:y:1994:i:6:p:1085-1096
    DOI: 10.1111/j.1539-6924.1994.tb00080.x
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    References listed on IDEAS

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    1. Isen, Alice M. & Geva, Nehemia, 1987. "The influence of positive affect on acceptable level of risk: The person with a large canoe has a large worry," Organizational Behavior and Human Decision Processes, Elsevier, vol. 39(2), pages 145-154, April.
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