doi: 10.18178/joebm.2023.11.2.738
Trusting Behavior, Risk Preference and Loss Aversion
Jiatong Xue
- University of Nottingham, UK.
Abstract
This paper uses experimental methods to study if individual’s risk preference or loss aversion will affect people’s trusting behavior. The results of the experiment show that individuals’ risk preference significantly impacts people’s trusting behavior. Compared with other subjects, people who are relatively less risk-averse show a higher degree of trust in others. Moreover, individuals’ loss aversion also affects people’s trusting behavior, subjects with relatively lower levels of loss aversion exhibit a higher degree of trust in others.
Keywords
- Decision making
- loss aversion
- risk preference
- trusting behavior
How to Cite
Jiatong Xue, "Trusting Behavior, Risk Preference and Loss Aversion," Journal of Economics, Business and Management, vol. 11, no. 2, pp. 57-62, 2023. https://doi.org/10.18178/joebm.2023.11.2.738
Copyright & License
Copyright © 2023 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).