The Mean & Range Effect – A Sweet Spot Stimulating Risk-Seeking in Managerial Decision Support

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989592%3A15210%2F20%3A73600928" target="_blank" >RIV/61989592:15210/20:73600928 - isvavai.cz</a>
Alternative codes found
RIV/61989592:15410/20:73600928
Result on the web
<a href="http://njb.fi/wp-content/uploads/2020/06/2_Stoklasa_et_al.pdf" target="_blank" >http://njb.fi/wp-content/uploads/2020/06/2_Stoklasa_et_al.pdf</a>
DOI - Digital Object Identifier
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Result language
angličtina
Original language name
The Mean & Range Effect – A Sweet Spot Stimulating Risk-Seeking in Managerial Decision Support
Original language description
We report a specific irregularity in risk-attitudes that occurs under one of the most common risk presentation formats. Representing the risk by the expected value and the range of possible values can result in increased risk-seeking compared to other less- or more- information-rich formats of risk presentation. We call this phenomenon the mean & range effect. Our research suggests a 20% prevalence of this phenomenon in three different countries confirmed by three different modes of analysis. A novel analytical approach is suggested that defines fuzzy subsets of the sample to allow for the partial membership of each respondent to more than one subset to account for within-respondent variability. The results suggest the possibility to influence the risk-appetite of decision-makers by a specific risk-presentation, which can seriously affect the outcomes of (group) decision-making problems. This finding is relevant for decision support systems design, marketing, corporate and consumer finance and related fields.
Czech name
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Czech description
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Publication year
2020
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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