Exaggerated Self-Assessments and the Preference for Controllable Risks

Abstract

People prefer controllable risks over less dangerous uncontrollable ones. Two kinds of evidence suggest that people′s belief that they are more capable than others at controlling dangerous outcomes contributes to this preference: In Study 1, the preference for controllable risks was reduced when subjects were choosing risks for another person rather than for themselves. In Study 2, this preference was stronger when the ability required to control outcomes was conducive to an "I am above average" bias than when it was not. The preference for controllable risks over less dangerous uncontrollable ones was obtained for hypothetical scenarios as well for actual choices and was shown to reduce subjects′ expected outcomes.