Risk-Taking and Risk-Avoiding Behavior: The Impact of Some Dispositional and Situational Variables

The purpose of this research was to assess the ability of a decision making model to correctly predict subjects' preferences for one of two alternatives; one alternative was highly valued but risky, whereas the other was less valuable but more certain. The model was based on the assumption that an additive relationship exists among self-efficacy, self-worth, and parental expectations in influencing subjects' propensity to take risks. The results suggested that the model did not work as expected. Rather, self-efficacy emerged as the principle variable influencing the risk-taking and risk-avoiding decision-making behaviors of subjects when a variety of resources were involved.