Abstract
Experienced executives frequently try to modify the risky situations they face in order to make them more favorable rather than simply choosing from among available decision options. This article investigates several types of risk adjustments such as trying to influence the situation through bargaining and spending resources, gathering information, developing new options, and consulting one's superiors. A theoretical framework is presented that characterizes different types of adjustments and relates them to variables such as perceived risk, perceived control, perceived responsibility, decisiveness, and risky choice. The framework is tested using experienced decision makers who respond to four simulated risky business decisions.
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University of British Columbia
Chinese University of Hong Kong
This study was supported by grants from The Centre of International Business Studies at The University of British Columbia, The Chinese University of Hong Kong, and the Social Sciences and Humanities Research Council of Canada.
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Wehrung, D.A., Lee, KH., Tse, D.K. et al. Adjusting risky situations: A theoretical framework and empirical test. J Risk Uncertainty 2, 189–212 (1989). https://doi.org/10.1007/BF00056137
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DOI: https://doi.org/10.1007/BF00056137