Experimental Study on the Risk Preference Characteristics of Members in Supply Chain Emergencies

Abstract

Since risk preference affects the behavior of decision makers, the study of its characteristics and impact on decision-making contributes to good planning for emergency coordination. The consistency of a member’s risk preferences in the conventional risk field and emergencies of a supply chain was analyzed by applying the prospect theory and adapting the domain-specific risk-taking (DOSPERT) scale. The influence of time pressure on the risk preferences and decision-making behaviors of members was studied in the emergency field and its sub-emergencies of a supply chain. The conclusions were drawn based on the empirical study. First, the risk preference could be measured in terms of conventional risk and emergencies. Second, the members tended to be risk averse with no time pressure, and the degree of risk aversion was weakened with time pressure, which had the greatest effect in the natural disaster event. Third, even though the change in risk preference had a consistency regarding the four types of sub-events of supply chain emergencies, it was inconsistent regarding the conventional risks and emergencies. With the evolution trend of risk preference demonstrated and the relationship between preference and time pressure revealed, this study may provide a decision-making reference for the formulation of a supply chain emergency coordination scheme.