Business executives and choice of risk, Microeconomics

Business Executives and Choice of Risk

*  Example

- Study of 464 executives found that:

  • 20% persons were risk neutral
  • 40% persons were risk takers
  • 20% persons were risk averse
  • 20% persons did not respond

*  The persons who liked risky situations did so when the losses were involved.

*  When risks involved gains same, executives opted for less unsafe situations.

*  The executives made efforts to reduce or eliminate risk by delaying decisions and gathering more information.

Posted Date: 10/10/2012 8:53:50 AM | Location : United States







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