Subjects: Psychology >> Experimental Psychology submitted time 2024-03-13
Abstract： Abstract：Money source influences risk-taking behaviors. Although studies consistently indicated that individuals demonstrate a higher propensity to make risk investments when utilizing non-labor income as opposed to labor income, explanations as to why non-labor income leads to continuously blow money from non-labor sources into risky investments are scarce. The current study leverages a computational modeling approach to compare the differences in the dynamic risk investment process among individuals endowed with income from different sources (i.e., non-labor income vs labor income) to understand the shaping force of higher risk-taking propensity in individuals with non-labor income. A total of 103 participants were recruited and completed the Balloon Analogue Risk Task (BART) with an equal monetary endowment, either as a token for completion of survey questionnaires (representing labor income) or as a prize from a lucky draw game (representing non-labor income). We found that individuals endowed with non-labor income made more risky investments in the BART compared to those with labor income. With computational modeling, we further identified two key differences in the dynamic risk investment processes between individuals endowed with labor and those with non-labor income. Specifically, individuals endowed with non-labor income had a higher preset expectation for risk-taking and displayed desensitization towards losses during risk investments, in contrast to individuals with labor income. This study sheds light on the fundamental factors contributing to the increased tendency for risky investments with non-labor income, providing new insights into the psychological mechanisms underlying risk-taking behaviors.
Peer Review Status:
Awaiting Review
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