Risk preference shares the psychometric structure of major psychological traits

Area of Science:

• Psychology
• Behavioral Economics
• Psychometrics

Background:

• The existence of a general factor of risk preference (R) and its stability as a psychological trait remain debated.
• Previous research has not adequately integrated diverse risk-taking measures from different traditions (self-report, behavioral, frequency).
• Understanding risk preference is crucial for various fields, including economics, psychology, and public health.

Purpose of the Study:

• To investigate the extent to which a general factor of risk preference (R) exists.
• To determine if risk preference can be considered a stable psychological trait.
• To integrate multiple risk-taking measures from distinct measurement traditions.

Main Methods:

• A comprehensive psychometric approach was employed with 1507 healthy adults.
• Participants completed 39 distinct risk-taking measures, encompassing stated preferences, revealed preferences, and actual risky activities.
• A subsample (n=109) underwent retesting after 6 months to assess temporal stability.

Main Results:

• Correlations between self-reported propensity measures and behavioral measures of risk-taking were weak.
• A general factor of risk preference (R) emerged, generalizing from stated preferences to specific and real-world risky activities (e.g., smoking).
• The general factor of risk preference (R) demonstrated high reliability across time, indicating its stability as a trait.

Conclusions:

• A general factor of risk preference (R) exists and is a stable psychological trait.
• This study provides an empirical foundation for mapping the construct of risk preference, including general and domain-specific components.
• Findings have significant implications for assessing risk preference in both laboratory and real-world settings.