Testing Question Order Effects of Self-perception of Risk Propensity on Simple Lottery Choices as Measures of the Actual Risk Propensity

Abstract

Uncertainty together with the necessity of making choices inevitably results in risky decisions. For many years now, scientists have been studying notions connected with risk such as risk management, risk perception or risk propensity. While many sophisticated methods regarding measurement of risk propensity have been developed so far, it seems that little attention has been paid to checking whether they are not inherently fl awed. The main goal of this article is to check with a simple preliminary study whether questionnaire based methods of risk propensity assessment are not susceptible to question order effects. The research is focused on respondents' answers to simple lottery choices as measures of their risk propensity. However, what would happen if the respondents were fi rst asked how they perceive their own risk propensity? In order to answer this query a few questions designed to measure risk propensity and self-perception of risk propensity have been interspersed in a questionnaire of another research project. Furthermore, as an additional output of the study, the correlation has been checked between self-perception of risk propensity and the actual assessment of risk propensity based on the questions used. The results of the study show that question order effects are partially present in the setting described. Some conclusions and recommendations for further research are made based on the results. Finally, it can be concluded from the research that simple self-perception of risk propensity was signifi cantly correlated with measures of actual risk propensity used.

What are the key drivers to promote entrepreneurial intention of vocational college students? An empirical study based on structural equation modeling

“… Bodill and Roberts (2013) points that individuals who have a high RP are more likely to choose high-risk entrepreneurial activities to achieve their goals because of the high profitability associated with such activities. Otherwise, they will give up entrepreneurship ( Golik, 2018 ). In addition, the higher the individual’s risk tendency, the more likely it is to underestimate the risk in some cases, thereby reducing their perception of risk ( Ward et al, 2019 ).…”

“…In addition, the higher the individual’s risk tendency, the more likely it is to underestimate the risk in some cases, thereby reducing their perception of risk ( Ward et al, 2019 ). Some literatures have introduced the variable of risk propensity to study the influencing factors of EI ( Golik, 2018 ; Gu et al, 2018 ; Hussain et al, 2021 ). Gu et al (2018) point out that individuals who make entrepreneurial choices have a higher risk preference than ordinary people.…”

The Ordering of Gambling Severity and Harm Scales: A Cautionary Tale

“…Gambling surveys tend to include subjective questions that ask respondents to reflect on their own gambling behaviour and, as a result, may be highly prone to questionorder effects. Previous research on question-order effects in gambling surveys confirms this possibility, with one study examining the impact of survey placement in the Focal Adult Gambling Screen (Harrison et al, 2017) and another the placement of simple lottery questions and perceptions of risk propensity (Golik, 2019), both studies finding question-order effects. This finding highlights the importance of testing for question-order effects in gambling surveys, particularly those that are of a subjective nature.…”