Risk Perception as a Function of the Language Structure of Numbers

Magnitude perception is the intuitive response to numerical stimuli, influencing an individual's risk perception when decisions rely on numerical data. This study investigates the potential impact of language on this process, focusing on structural differences in German and English number words and the native versus foreign language effect. Different languages that use the same number systems may have different structures for their verbal notation of numbers. For instance, German uses inverted verbal notation ("one and twenty") compared to English ("twenty-one"). It is uncertain whether numerical inversion affects individuals' perception of a number's magnitude. This study examines if there is a linguistic difference in the perception of numerical magnitude and risk perception among German-English bilinguals. Part 1 of the study investigates the influence of inverted verbal notation using numbers with larger tens digits and smaller ones digits, hypothesizing three potential effects of inversion: primacy, recency, or summation. Part 2 explores the foreign versus native language effect by examining the numbers 89 and 91, focusing on how the transition between tens digits may amplify linguistic effects. The findings have implications for industries such as healthcare, finance, and marketing, where professionals present statistics to individuals making critical decisions. These individuals include patients evaluating medical risks, investors assessing financial opportunities, and consumers considering marketing information. Understanding how numerical data is perceived across languages is crucial for ensuring that decisions are as informed as possible.