Recent Findings in Risk Management Described by Researchers from University of Amsterdam (Defaults, Normative Anchors, and the Occurrence of Risky and Cautious Shifts)

2019 AUG 28 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- A new study on Risk Management is now available. According to news reporting out of Amsterdam, Netherlands, by NewsRx editors, research stated, “Choice shifts occur when individuals advocate a risky (safe) decision when acting as part of a group even though they prefer a safe (risky) decision when acting as individuals.”

Financial support for this research came from Research Priority Area Behavioral Economics of the University of Amsterdam.

Our news journalists obtained a quote from the research from the University of Amsterdam, “Even though research in psychology and economics has produced a mass of evidence on this puzzling phenomenon, there is no agreement about which mechanism produces choice shifts. In an experiment, we investigate the performance of two prominent mechanisms that have been proposed to explain the phenomenon; (i) rank-dependent utility and (ii) a desire to conform to the wishes of the majority.”

According to the news editors, the research concluded: “The evidence provides clear support for the conformity explanation.”

For more information on this research see: Defaults, Normative Anchors, and the Occurrence of Risky and Cautious Shifts. Journal of Risk and Uncertainty, 2018;56(3):211-236. Journal of Risk and Uncertainty can be contacted at: Springer, Van Godewijckstraat 30, 3311 Gz Dordrecht, Netherlands. (Springer - www.springer.com; Journal of Risk and Uncertainty - http://www.springerlink.com/content/0895-5646/)

Our news journalists report that additional information may be obtained by contacting S. Jagau, University of Amsterdam, Creed, Roetersstr 11, Nl-1018 Wb Amsterdam, Netherlands.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1007/s11166-018-9282-6. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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