Determinants of economic risk preferences across adolescence

This study examined economic risk preferences using a multidimensional approach in a large sample of human adolescents and adults (N = 444, ages 13-27). Although there were numerous theories and research focusing on adolescent economic risk-taking, comparatively little is known about the role of incidental affective factors (i.e., affects irrelevant to the decision at hand) in decision-making in relation to economic risks. We tested six psychological determinants of risk preference (age, gender, state positive/negative affect, state anxiety, and indecision) on two economic decision tasks (loss aversion and skewness). Adolescents demonstrated a reduced bias towards negatively skewed risks compared to young adults. Positive affect shifted risk preference for all participants, with adults and adolescents diverging in risk direction. Adolescents reported higher positive affect and lower negative affect than young adults, but trait anxiety was age invariant. Indecision was not significantly associated with any outcomes of interest. These results highlight the evolving nature of incidental affect and valence bias on economic risk-taking from adolescence into adulthood. This study contributes to understanding the development of economic choice and affective factors that influence decision-making, as well as to broader efforts to improve risk-related decisions.