Determinants of Risky Decision-Making Behavior: A Test of the Mediating Role of Risk Perceptions and Propensity

Abstract

The reported research examined the usefulness of placing risk propensity and risk perception in a more central role in models of risky decision making than has been done previously. Specifically, this article reports on two studies that examined a model in which risk propensity and risk perception mediate the effects of problem framing and outcome history on risky decision-making behavior. Implications of the pattern of results for future research are discussed.