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

Kód výsledku v 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>

Nalezeny alternativní kódy

RIV/61989592:15410/20:73600928

Výsledek na webu

<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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Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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 &amp; 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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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 &amp; 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.

Druh

J_ost - Ostatní články v recenzovaných periodicích

CEP obor

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OECD FORD obor

50204 - Business and management

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2020

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Nordic Journal of Business

ISSN

2342-9003

e-ISSN

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Svazek periodika

69

Číslo periodika v rámci svazku

1

Stát vydavatele periodika

FI - Finská republika

Počet stran výsledku

23

Strana od-do

21-43

Kód UT WoS článku

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EID výsledku v databázi Scopus

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