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Choice Under Risk: How Occupation Influences Preferences.

Tetiana Hill1, Petko Kusev2, Paul van Schaik3

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Occupational background significantly influences risk preferences. Individuals in high-risk jobs exhibit different risk-taking behaviors than those in white-collar roles, especially when decisions involve gains or losses.

Keywords:
choice under riskdecision contextoccupationrisk preferencesutility

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Area of Science:

  • Behavioral Sciences
  • Psychology
  • Economics

Background:

  • Previous research explored socio-economic, cognitive, biological, and psychological factors in decision-making.
  • The impact of occupational background on risk preferences remains under-examined.

Purpose of the Study:

  • Investigate how occupational background and decision framing influence risk preferences.
  • Analyze risk preferences for options with equivalent expected utility.

Main Methods:

  • Examined participants from different occupational backgrounds (high-risk vs. white-collar).
  • Varied decision-making frames (gain vs. loss, domain, context, risk presentation, utility ratios).

Main Results:

  • Occupational background impacts risk preferences.
  • High-risk occupation individuals were risk-averse in gains and risk-seeking in losses.
  • White-collar individuals showed the opposite pattern: risk-seeking in gains and risk-averse in losses.

Conclusions:

  • Occupational background is a significant factor influencing decision-making under risk.
  • Decision framing (gain/loss) interacts with occupational background to shape risk preferences.