Exploring the concept and measurement of general risk aversion

Abstract

In this paper we explore the concept and measurement of a general-as opposed to domain-specific-risk aversion construct. We review the literature on risk aversion and perceived risk, focusing on issues of concept meaning and measurement, and discuss problems with current measures of risk aversion for research application. An exploratory empirical investigation is reported in which we (1), develop a scale to measure general risk aversion and (2), explore its relationships with intentions to engage in various behaviors vis a vis other similar measures used in the past. The paper concludes with a discussion of the implications of our findings and suggestions for future research.