Risk-taking in games of chance and skill: Informational and affective influences on choice behavior.

Abstract

Three studies to pinpoint the underlying dynamics related to risk-taking in skilled and chance situations are presented. Study 1 is an attempt to demonstrate that cognitive and motivational theories of risk-taking must be combined to account for individual differences in skilled situations. Here, both informational influences as related to uncertainty orientation (cf. Sorrentino & Short, 1986) and affective influences as related to achievement-related motives are examined. In support of these notions, this study found that individual differences in uncertainty orientation and achievement-related motives combine to produce the greatest preference or avoidance of moderate risk (as opposed to low or high) in a skilled situation. Studies 2 and 3 show that the effect for uncertainty orientation generalizes to chance situations. Gender differences were also found to combine or interact with these effects. Taken together, these 3 studies help to clarify many issues remaining in the risk-taking area.Risk-taking behavior in skilled situations has long been an enigma for theorists attempting to account for choice behavior as a function of motivation or cognition. Drawing on early work on level of aspiration (e.g., Lewin, Dembo, Festinger, & Sears, 1944), Atkinson (1964) developed his original theory of achievement motivation, in which risk-taking played a central role. His theory stated that success-oriented persons, or those in whom the motive to succeed is greater than the motive to avoid failure, should prefer moderate risk to low or high levels of risk. Conversely, failure-threatened persons, or those in whom the motive to avoid failure is greater than the motive to succeed, should most avoid or least prefer moderate risk to low or high levels of risk.For success-oriented persons, preference for moderate risk is a compromise between the incentive value of success, which would be greatest at very difficult tasks, and the probability of success, which would be greatest at easy tasks. Thus to maximize one's opportunity to obtain pride in accomplishment, one should choose a task that one can realistically achieve and that contains some incentive value-a moderately risky task. Failure-threatened persons, however, should prefer low or high risk, as one is likely to avoid failure at any easy task and feel Study 1 is based on a master's thesis by Patricia A. Raso-Knott. Studies 2 and 3 are based on a doctoral dissertation by Erin C. Hewitt.

The effect of uncertainty on learning in game-like environments

“…For instance, women compared to men were found to be more averse to risk and uncertainty in all domains except social risk (Weber, Blais, & Betz, 2002). Consistent with this finding, another study showed that females have less risky preferences than females in a ring-toss game (Sorrentino, Hewitt, & Raso-Knott, 1992). Due to the unbalanced sample size of 38 female and 102 male participants, the effect of gender was not analyzed in the current study.…”

Jeer Pressure: The Behavioral Effects of Observing Ridicule of Others

“…Thus, both strategies were assumed to be indicative of fear of failure, whereas moderate distances were assumed to reflect low fear of failure because the test takers were realistically challenging themselves. Atkinson and Litwin (1960; see also Sorrentino et al, 1992) showed that failure-threatened individuals (low in need for achievement and high in test anxiety) made more throws at both the closest and farthest distances on this task than did success-oriented individuals (high in need for achievement and low in test anxiety).…”

The influence of individualism and uncertainty avoidance on per capita gambling turnover

“…slot machines). This reasoning is partially supported by Sorrentino, Raso-Knott and Hewitt (1992), who found that individual differences in uncertainty orientation and achievementrelated motives combine to produce the greatest preference or avoidance of moderate risk in a skilled situation. Further studies revealed that the effect for uncertainty orientation generalised to chance situations.…”