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We review the experimental evidence on risk aversion in controlled laboratory settings. We review the strengths and weaknesses of alternative elicitation procedures, the strengths and weaknesses of alternative estimation procedures, and finally the effect of controlling for risk attitudes on inferences in experiments.

The purpose of this paper is to precisely measure the risk attitudes of Chinese agricultural laborers and then analyze the impact and mechanism of risk attitudes on the entrepreneurial choices of Chinese agricultural laborers.

This paper is based on the theory of expected utility function and utilizes the authoritative China Family Panel Studies (CFPS) to accurately measure the risk attitudes of 7,639 Chinese agricultural laborers through experimental methods. In the empirical analysis, this paper employed Probit, IV-Probit and mediation effect models to examine the research hypotheses.

First, agricultural laborers with the lowest risk appetite account for 54.8%, which is 8.69 times the number of agricultural laborers with the highest risk appetite. Second, agricultural laborers preferring risk are more likely to engage in entrepreneurship; this result has been validated through a series of robustness tests. Third, mechanism analysis shows that risk attitude drives the entrepreneurship of Chinese agricultural laborers through improving interpersonal trust, social interaction and formal credit behavior.

Existing research has mainly investigated the impact of risk attitudes on the entrepreneurial choices of the general population, with limited attention paid to agricultural laborers. The potential mechanisms in that process remain unclear, and the measurement results of risk attitude also require further precision. Based on experimental method, this paper not only helps clarify the relationship between risk attitudes and agricultural laborers entrepreneurship in China, but also provides policy recommendations to promote agricultural laborers entrepreneurship and drive rural development.

The purpose of this paper is to derive the determinants of young adults’ subjective and objective risk attitude in theoretical and real-world financial decisions. Furthermore, a comparison of the factors that influence young adults’ and older adults’ risk attitude is provided.

The paper relies on an experimental setting and a cross-sectional field study using data of the German central bank’s (Deutsche Bundesbank) PHF-Survey.

Young adults’ objective risk aversion is not constant but increases with stake sizes. Furthermore, young adults’ subjective risk attitude is a better predictor for their objective risk attitude than a set of commonly employed socio-demographics and economics like age or income. Moreover, young adults’ subjective risk attitude works as a mediator for the influence of their investable financial wealth on their objective risk attitude. Although young adults’ subjective risk attitude shows a gender effect, the influence of young adults’ gender on their objective risk attitude decreases with higher stake sizes. Compared to older adults, young adults generally show a similar degree of subjective risk aversion. However, due to stronger financial restrictions, young adults show a higher degree of objective risk aversion.

Although individuals’ financial outcomes depend on the financial behavior established in young adulthood, there is no study that simultaneously analyzes the determinants of young adults’ subjective and objective risk attitude in real-world financial decisions with a focus on young adults as a separate age group. The paper closes this gap in literature and additionally provides a comparison of the subsamples of young adults and older adults. The analysis in this paper reveals that young adults’ lower engagement in financial markets is primarily driven by their tight budget and not by a fundamental different subjective risk attitude.

The main parties in construction projects are the engineers, clients, architects, contractors, material suppliers, and consultants such as the project managers. They play the most important roles in implementing construction projects, and their activities have a significant impact on their risk attitudes during the execution of projects. Because each participant has their particular interests, by proprietary information, each participant is driven to achieve maximum benefit, which can result in improper behaviour concerning each other. The risk in this situation is that there would be a moral hazard and adverse selection based on information asymmetry among principal construction participants especially contractors; this outcome is called risk attitudes. Behaviour is affected by various risk factors and the successful implementation of construction projects depends on effective management of the key risk factors part of which is a personal factor. The purpose of this paper is to identify the critical factors affecting contractors’ risk attitudes among Malaysian construction companies with the moderating role of government policy. Organizational control theory and expected utility theory were used to develop the theoretical framework. The study investigated G7 contractors in the Malaysian construction industry. Data were collected through the use of a questionnaire.

The research analysis was based on structural equation modelling (SEM), and the research model was ascertained through the Smart PLS 3.0 software (Ringle et al., 2012). Partial least square-SEM is an appropriate analysis that was used to assess the results in the current research because its algorithm permits the unrestricted computation of cause-effect relationship models that use both reflective and formative measurement models. This study uses the quantitative method to identify the individual factors influencing contractors’ risk attitude and the moderating role of government policy among construction companies in Malaysia. This study also focussed on the G7 contractors operating in the Malaysia construction industry that specializes in building, bridge and road construction projects. The duration of the data collection was between two and three weeks. The questionnaire was prepared both in Malay and English languages to allow the respondents to respond most conveniently. Before the copies of the questionnaire were distributed, the selected contractors’ committees were duly informed about the details of the survey procedures. The adopted Likert scale was originally a five-point scale that ranges from “very low” to “very high” with “low or high” in between.

The result of this study moderately supports the hypothesized relationships proposed in the theoretical model. In particular, the results recommended that personal factors that affect risk attitudes (working experience, emotional intelligence, professional competence and physical health) have a significant relation with contractors’ risk attitudes in the construction companies in Malaysia. Also, it has been found that government policy (rules and regulations) are important determinants of risk attitudes.

The study focussed on individual factors affecting contractors’ risk attitudes in the construction company’s in Malaysia. Therefore, the dimensions of factors affecting risk attitudes can be used in another aspect of construction projects such as management factors, economic factors and technical factors. Therefore, further research might investigate other grades of Malaysian construction companies apart from Grade 7 contractors to know if there is a similarity in the results; other grades of the contractors might have potential positive contributions to the construction industry as well.

With consider to the practical, the current research findings have several contributions for the contractors and project managers. The research results demonstrate that government policy plays an important role in the construction industry and organizational support will also help contractors to control their attitudes in working place. Individual factor has a direct relationship with contractor risk attitudes (CRA), project managers must ensure that the government policy has an impact in all their workers and offered is competitive, fair and by their employees’ contribution. Apart from that managers should also focus on organizational goals especially in managing professional and skilled contractors in the companies. Employees who perceived their employers as uncaring or not supporting their needs and well-being may not be happy working with the organization and the tendency for them to change their attitudes towards risk will be high.

This study also contributes knowledge by lending empirical support to the organizational control theory and expected utility theory system’s effect on CRA and confirming that changing one individual attitude will change the whole equilibrium. This is useful to aid in further synthesis of organizational control theory and expected utility theory in construction companies.

This study is the first attempt at evaluating the direct and moderating effect relationships among individual factor affecting risk attitudes, government policy and CRA in Malaysian construction companies. These findings also prop up the applicability of the organizational control theory and expected utility theory within the context of construction companies in Malaysia. Also, this study contributed to the literature on psychology by subjective (psychological) measures of individuals’ behaviour and decisions. In the CRA literature, there has been much discussion on personal characteristics to understand behaviours such as attitudes of a contractor towards risk and morals.

The purpose of this paper is to develop a novel integrated supplier selection approach incorporating decision maker’s risk attitude using the artificial neural network (ANN), analytic hierarchy process (AHP) and technique for order of preference by similarity to ideal solution (TOPSIS) methods.

In the proposed approach, the ANN model is used to classify decision maker’s risk attitude; the fuzzy AHP method is used to determine the relative weights of evaluation criteria; and the fuzzy TOPSIS method is used to evaluate ratings of suppliers. Finally, experiments are conducted to verify the feasibility and efficiency of the proposed integrated approach.

Experiments results show that the proposed integrated approach is effective and efficient to help decision makers to select suitable suppliers according to their risk attitudes.

The aim of this paper is to develop a novel integrated supplier selection approach incorporating decision maker’s risk attitude using the ANN, AHP and TOPSIS methods. The decision maker’s risk attitude toward procurement transaction is originally considered in supplier selection process.

The purpose of this paper is to examine the relationships between financial knowledge, socialization and financial satisfaction with financial risk attitude and financial behavior as a mediator after demonetization and introduction of GST.

The sample consisted responses of 286 individuals from the city of Allahabad, Uttar Pradesh, India and making financial decisions for the household for at least last two years. The data were analyzed using exploratory factor analysis and mediation regression analysis.

All sub-scales used to measure constructs had satisfactory reliabilities and internal consistencies. It was found that financial risk attitude and financial behavior both mediate the relationship between financial socialization and financial satisfaction as well as between financial knowledge and financial satisfaction.

This research is based upon survey method and voluntary participation. Hence one can question generalization of findings to larger samples. Moreover, the study is limited to a restricted geographical region which could affect the generalization of findings.

Results provide insights into the antecedents of financial satisfaction of individuals from tier II city of India. Financial planners may utilize this study for enhancement of financial satisfaction of their clients and hence retention of the same.

A majority of researchers use survey without evaluation validity of instruments in the selected context and sample. This research contributed to the literature and practice by testing validation of constructs of financial satisfaction in India.

The purpose of this study is to understand how risk attitudes drive demand for different types of insurance amongst Ghanaians.

This study uses data from a nationally representative survey of Ghanaian households (Ghana Living Standards Survey Round 7). Risk aversion is measured following the approach of Holt and Laury (2002) in the use of hypothetical questions about investment. Probit regressions are used to estimate the effect of risk aversion on insurance outcomes.

The paper finds evidence that supports the theory that risk attitudes influence insurance demand. Specifically, risk aversion is positively related to the uptake of insurance in general and in particular, public health insurance. Unlike previous literature, the authors do not find the sex of the respondent to affect the relationship between risk aversion and insurance demand except for private health insurance. Socio-economic factors such as wealth, age and education were found to strongly predict insurance demand.

The findings confirm that risk attitude influence the demand for insurance in developing countries but socio-economic factors play a strong role in explaining low insurance penetration in such contexts.

Theoretically, attitudes towards risk have been strongly linked with insurance demand. Yet, empirical evidence on this relationship is limited in developing countries where insurance penetration is very low. This study is among the first to document the influence of risk attitude on the demand of a range of insurance products using a large nationally representative sample of individuals in a developing country.

The aim of this study is to examine how personality traits influence interviewees’ negotiation decisions as well as whether and to what extent such effects are moderated by one’s gender and risk attitudes.

An experiment was designed in which participants acted as interviewees and were asked to decide whether to initiate negotiations to potentially increase their salary and benefits. A logistic regression analysis and conditional process analysis were used to examine the effects of personality traits (agreeableness and extraversion) on the initiation of salary negotiation, as well as whether and to what extent such effects are moderated by one’s gender and risk attitudes.

A significant direct influence of extraversion and risk attitude on a job applicant’s initiation of salary negotiations. It was also found that risk attitudes moderate the effect of personality traits (i.e. agreeableness and extraversion) on individuals’ negotiation decisions. This study thus indicates that the effects of personality traits on job applicants’ initiation of salary negotiations are contingent on their risk attitudes.

To the authors’ knowledge, this study is the first to investigate the direct as well as moderated effects of personality traits on interviewees’ negotiation behavior in job interviews. The findings of this study thus significantly contribute to the literature in this line of research. Human resource professionals, as well as job seekers, may also benefit from the findings and implications of this study.

A rich literature has documented gender-based differences in health care utilization and outcomes. The role of risk attitude in explaining the variations is limited at best. This study examines gender differences in health utilities and risk attitudes.

Data on 13 health states were collected from 629 students via questionnaires at the Ben-Gurion University of the Negev in 2005. From each respondent, we assessed utilities for a subset of health states, using Time Trade-Off and Standard Gamble. A risk attitude coefficient was calculated for each respondent as a function of their utilities for all outcomes assessed. The risk coefficient derived from a closed-form utility model for men was compared to that of women using the t-statistic.

There was a statistically significant difference in the risk attitudes of men and women. Men had a concave utility function, representing risk aversion, while women had a near linear utility function, suggesting that women are risk neutral.

Differences in risk attitude may be an important contributor to gender-based disparities in health services utilization. More research is needed to assess its full impact on decision-making in health care.

This paper aims to explore the relationship between prudence in risk attitudes and patience of time preference of Chinese apple growers regarding off-farm cold storage of production and marketing in non-harvest seasons. The authors also consider the effect of farmer participation in cooperative-like organizations known as Farm Bases (FBs).

The authors use multiple list methods and elicitation strategies to measure Chinese apple farmers' risk attitudes and time preferences. Because these farmers can either sell their apples immediately to supermarkets or intermediaries or place them in storage, the authors assess correlations between their storage decisions and their preferences regarding risk and time. The authors also differentiate risks involving gains and losses and empirically examine individual risk attitudes in different scenarios.

Marketing decisions are moderately associated with risk attitudes but not time preference. Farmers with memberships in local farmer cooperatives are likely to speculate more in cold storage. Thus, risk aversion behavioral and psychological motives affect farmers' decision-making of cold storage and intertemporal marketing activities. However, membership in cooperatives does not always result in improved income and welfare for farmers.

The research confirms that behavioral factors may strongly drive vulnerable smallholder farmers to speculate into storage even under seasonal and uncertain marketing volatility. There is the need to think deeper about the rationale of promoting cooperatives and other agricultural forms, because imposing these without careful consideration can have negative impacts.

Do risk and time preferences affect the decision of farmers to utilize storage facilities? This question is important because it is not clear if and how risk preferences affect the tradeoff between consuming today and saving for tomorrow, especially for farmers in developing countries.