DIMENSIONS OF RISK PERCEPTION FOR FINANCIAL AND HEALTH RISKS

This study of 29 MBA students compares two models of risk perception f or both financial and health risk stimuli. The first, inspired by Luce and Weber's Conjoint Expected Risk (CER) model, uses five dimensions: probability of gain, loss and status quo, and expected benefit and ha rm. The second, inspired by the Sovic et al. psychometric model, emplo ys seven dimensions: voluntariness, dread, control, knowledge, catastr ophic potential, novelty, and equity. The CER-type model provided a be tter fit for most subjects and stimuli. Adding the psychological risk dimensions from the Slovic et al. model explained only modestly more v ariance. Relationships between the dimensions of the two models are de scribed and the construction of a hybrid model explored.