The effect of prior outcomes on gender risk-taking differences

Lam, Desmond; Ozorio, Bernadete

doi:10.1080/13669877.2012.737824

Cited by 17 publications

(12 citation statements)

References 56 publications

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“…We are also aware of two papers that look at how gender affects the relationship between risk taking and previous monetary gains or losses. Cummins, Nadorff, and Kelly (2009) found no effect of gender, and Lam and Ozorio (2013) found the same for subjects with no experience of casino gambling. For subjects with experience of casino gambling, Lam and Ozorio (2013) found that men take more risk after a monetary gain than a loss, but the reverse holds true for women.…”

Section: Introductionmentioning

confidence: 87%

“…Cummins, Nadorff, and Kelly (2009) found no effect of gender, and Lam and Ozorio (2013) found the same for subjects with no experience of casino gambling. For subjects with experience of casino gambling, Lam and Ozorio (2013) found that men take more risk after a monetary gain than a loss, but the reverse holds true for women. These two papers build on Thaler and Johnson (1990), who did not study the effect of gender, but found risk seeking after a monetary gain, risk aversion after a monetary loss, and a "break even effect" whereby bets that offer the opportunity to break even are particularly attractive.…”

Section: Introductionmentioning

confidence: 87%

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Gender differences and dynamics in competition: The role of luck

Gill

Prowse

2014

Quantitative Economics

107

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In a real effort experiment with repeated competition we find striking differences in how the work effort of men and women responds to previous wins and losses. For women, losing per se is detrimental to productivity, but for men, a loss impacts negatively on productivity only when the prize at stake is big enough. Responses to luck are more persistent and explain more of the variation in behavior for women, and account for about half of the gender performance gap in our experiment. Our findings shed new light on why women may be less inclined to pursue competition‐intensive careers.

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Section: Introductionmentioning

confidence: 87%

Section: Introductionmentioning

confidence: 87%

Gender differences and dynamics in competition: The role of luck

Gill

Prowse

2014

Quantitative Economics

107

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“…Under the background of professional trading, Coval and Shumway [21], Frino et al [6], and Mattos and Garcia [22] used regression models to explore how prior losses and gains affect current risk preference from the perspective of average market risk or extreme market risk. Lam and Ozorio [26] made an experimental betting game and investigated the gender risk-taking behavior with respect to prior outcomes in three distinct groups. In view of the bounded rationality of investors, the real market scenes can hardly be simulated through experiment and data of investors' transaction accounts usually are nonrepresentative because of the difficulty of obtaining.…”

Section: Introductionmentioning

confidence: 99%

Investors’ Risk Preference Characteristics Based on Different Reference Point

Wen

Gong

et al. 2014

Discrete Dynamics in Nature and Society

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Taking the stock market as a whole object, we assume that prior losses and gains are two different factors that can influence risk preference separately. The two factors are introduced as separate explanatory variables into the time-varying GARCH-M (TVRA-GARCH-M) model. Then, we redefine prior losses and gains by selecting different reference point to study investors' time-varying risk preference. The empirical evidence shows that investors' risk preference is time varying and is influenced by previous outcomes; the stock market as a whole exhibits house money effect; that is, prior gains can decrease investors' risk aversion while prior losses increase their risk aversion. Besides, different reference points selected by investors will cause different valuation of prior losses and gains, thus affecting investors' risk preference.

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“…Research in this area conducted on Chinese subjects is currently lacking and few, if any, can be found on gambling-specific issues. This is despite the fact that Chinese people are known to have a high propensity to gamble (Lam and Ozorio 2013;Lam 2007). For example, Macau, the only city in China with legalized casinos, is only around 30 km 2 in size but hosted more than 30 casinos of varied sizes (DSEC 2014).…”

Section: Introductionmentioning

confidence: 86%

An Exploratory Study of the Relationship Between Digit Ratio, Illusion of Control, and Risk-Taking Behavior Among Chinese College Students

Lam¹,

Ozorio²

2014

J Gambl Stud

Self Cite

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Previous studies on the relationship between digit ratio and risk-taking mainly focused on western subjects. Moreover, no researcher has examined the concurrent effect of digit ratio and illusion of control on gambling behavior. This exploratory study investigates the relationship between digit ratio, illusion of control and risk-taking behavior of Chinese subjects. Sixty-six students from a Chinese university were invited to answer a questionnaire and play a purposefully-designed betting game. The results show that the subjects' risk-taking level, measured in terms of average betting amount, is negatively correlated to their digit ratio but not to their illusion of control score. Moreover, there is no significant association between the subjects' digit ratio and illusion of control score. These preliminary findings will have useful implications to gaming regulators and businesses.

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The effect of prior outcomes on gender risk-taking differences

Cited by 17 publications

References 56 publications

Gender differences and dynamics in competition: The role of luck

Gender differences and dynamics in competition: The role of luck

Investors’ Risk Preference Characteristics Based on Different Reference Point

An Exploratory Study of the Relationship Between Digit Ratio, Illusion of Control, and Risk-Taking Behavior Among Chinese College Students

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