Risk, Reward, and Uncertainty: A Behavioral Economics Study Comparing Jockeys and Stock Traders

This paper presents a comparative study examining the behavioral economics of risk, reward, and uncertainty among professional jockeys and stock traders, two groups characterized by high-stakes decision-making under extreme pressure. While jockeys face immediate and often irreversible physical risks during horse racing, traders operate in volatile financial markets where risk is primarily monetary and frequently reversible. Despite these contrasts, both professions exhibit shared behavioral tendencies shaped by cognitive biases such as overconfidence, optimism, and loss aversion. The study integrates insights from Prospect Theory, the Somatic Marker Hypothesis, and neuroeconomic research to elucidate how incentives, physiological states, and psychological distortions influence decision-making in these distinct yet similar domains. A proposed two-dimensional framework maps the type of risk and time horizon, overlaid with incentives and behavioral biases, highlighting both convergences and divergences in risk behavior. The findings contribute to bridging sports medicine and behavioral finance, enriching the theoretical landscape of behavioral economics and suggesting avenues for cross-disciplinary interventions aimed at improving safety and performance in high-risk professions.