Dimensions of Risk Perception for Financial and Health Risks

David R. Holtgrave, Elke U. Weber

Research output: Contribution to journalArticle

Abstract

This study of 29 MBA students compares two models of risk perception for both financial and health risk stimuli. The first, inspired by Luce and Weber's Conjoint Expected Risk (CER) model, uses five dimensions: probability of gain, loss and status quo, and expected benefit and harm. The second, inspired by the Sovic et al. psychometric model, employs seven dimensions: voluntariness, dread, control, knowledge, catastrophic potential, novelty, and equity. The CER‐type model provided a better fit for most subjects and stimuli. Adding the psychological risk dimensions from the Slovic et al. model explained only modestly more variance. Relationships between the dimensions of the two models are described and the construction of a hybrid model explored.

Original languageEnglish (US)
Pages (from-to)553-558
Number of pages6
JournalRisk Analysis
Volume13
Issue number5
DOIs
StatePublished - Oct 1993
Externally publishedYes

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Keywords

  • Risk pereption
  • dimensional models
  • financial risk
  • health risk
  • safety risk

ASJC Scopus subject areas

  • Safety, Risk, Reliability and Quality
  • Physiology (medical)

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