Cross-cultural Differences in Risk Perception,but Cross-cultural Similarities in Attitudes Towards Perceived Risk
Year: 2006
Type: preprint
Study design: Observational Study
Abstract: In this study, respondents from the P.R.C., U.S.A., Germany, and Poland were found to differ in risk preference, as measured by buying prices for risky financial options. Chinese repondents were significantly less risk-averse in their pricing than Americans when risk preference was assessed in the traditional expected-utility framework. However these apparent differences in risk preference were associated primarily with cultural differences in the perception of the risk of financial options rather than with cultural differences in attitude towards perceived risk. In all cultures, and equal proportion(the majority) of respondents was willing to pay more for options perceived as less risky, i.e., were perceived-risk averse. These results are most natually explained within a risk-return conceptualization of risky choice. They have practical implications for cross-cultural negotiation and commerce by suggesting the locus of cultural differences in risky choice that may allow for the creation of joint gains.
Source: SSRN Electronic Journal
Authors: Christopher K. Hsee, Elke U. Weber
Institutions: University of Chicago, Columbia University
Language: English
Subfield: General Decision Sciences
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2124143578