Take a risk or proceed with caution: Prevention motivation moderates responses to near-loss events |
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| Authors: | Jill W. Paine Florian Federspiel Matthias Seifert Xi Zou |
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| Affiliation: | 1. Department of Human Resources and Organizational Behavior, IE University, IE Business School, Madrid, Spain;2. Managerial Decision Sciences, INCAE Business School Walter Kissling Gam Campus, Alajuela, Costa Rica;3. Operations and Technology, IE University, IE Business School, Madrid, Spain;4. Division of Leadership, Management and Organization, Nanyang Technological University, Singapore, Singapore |
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| Abstract: | A persistently pressing issue identified in the decision-making literature is that people not only fail to recognize the risks entailed in a near-loss event but also subsequently engage in further risk-taking. We contend in this paper that prevention motivation critically regulates decision-makers' responses to a near-loss. Across three studies, we found that high prevention-focused individuals perceive greater risks in a near-loss event and are subsequently less likely to take risks, compared with low prevention-focused individuals. This finding highlights the significance of applying a motivational perspective to studying decision-making and risk. |
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| Keywords: | near-loss prevention motivation regulatory focus risk-taking |
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