Risk preference: How decision maker's goal, current value state, and choice set work together

When and why do people choose a more or a less risky option? To answer this question, we propose that it is essential to examine the dynamic interrelations among three factors-the decision maker's goal (e.g., promotion vs. prevention goal), the current value state (e.g., the domain of gains vs. losses), and the choice set (i.e., perceived available options). We review previous theories that highlight the significance of each of these three factors. We then propose a motivational framework of risk preference that describes how these three factors work together motivationally to impact risk preference, illustrated by evidence from regulatory focus research. We then draw on this new motivational framework to examine the ways in which achievement motivation, need for power, and need for relational security are related to decision under risk, and discuss the broader implications of this motivational framework of risk preference. (PsycINFO Database Record (c) 2019 APA, all rights reserved).