Competitive disadvantage facilitates risk taking

The link between social comparison orientation and domain-specific risk-taking: exploring the mediating role of two dimensions of trait competitiveness

Introduction

Our recent research has demonstrated that social comparison orientation of ability (SCO-ability) is an antecedent of trait competitiveness (TC), and TC mediates the relation between SCO-ability and domain-specific risk-taking. TC is a multi-dimensional trait, therefore we sought to expand on prior research by examining whether SCO-ability predicted two distinct dimensions of TC: hypercompetitive orientation (HCO) and self-development competitive orientation (SDCO).

Methods

We investigated how these different dimensions of TC mediated the relation between SCO-ability and both overall and domain-specific risk-taking in two correlational studies of 622 college students (313 males, mean age = 22.10, SD = 2.35) and 717 adult workers (368 males, mean age = 27.92, SD = 5.11).

Results

We found that SCO-ability positively predicted HCO. Together, SCO-ability and HCO predicted overall risk-taking and risk-taking in the recreational and ethical domains in both samples. HCO mediated the relation between SCO-ability and both overall risk-taking and risk-taking in the recreational and ethical domains. Additionally, SCO-ability positively predicted SDCO. SCO-ability and SDCO mainly predicted risk-taking in the recreational domain in both studies. SDCO mediated the relation between SCO-ability and risk-taking only in the recreational domain.

Discussion

Collectively, the findings above advance our understanding of the relation between competition and risk-taking by using differentiated measures of TC (HCO and SDCO). Our findings suggest that HCO is more strongly related to risk-taking than SDCO, thereby refining the possible role of SCO-ability and TC in predicting overall risk-taking and domain-specific risk-taking.

Rank, stress, and risk: A conjecture

A perception at the core of studies that consider the link between social rank and stress (typically measured by the so-called stress hormone cortisol) is that the link is direct. Examples of such studies are Bartolomucci (2007), Beery and Kaufer (2015), and Koolhaas et al. (2017). A recent and stark representation of this body of work is a study by Smith-Osborne et al. (2023), who state that "social hierarchies directly influence stress status" (Smith-Osborne et al. p. 1537, italics added). In the present paper, we reflect on this "direct" perspective. We conjecture that the link between social rank and stress involves an intervening variable: an indirect relationship arises when the loss of rank triggers a behavioral response in the form of risk taking aimed at regaining rank, and it is the engagement in risk-taking behavior that is the cause of an elevated level of cortisol. Smith-Osborne et al., as well as others whose papers are cited by Smith-Osborne et al. and who, like Creel (2001) and Avitsur et al. (2006), conducted comprehensive research on the association between rank (social standing) and stress, do not refer to risk taking at all. We present four strands of research that lend support to our conjecture: evidence that in response to losing rank, individuals are stressed; evidence that in response to losing rank, individuals resort to risk-taking behavior aimed at regaining their lost rank; evidence that there exists a link between engagement in risky activities or exposure to risk and elevated levels of cortisol; and an analytical perspective on incidence and intensity, namely a perspective that shows how the willingness to take risks responds to a change in rank, specifically, how a loss of rank triggers a greater willingness to take risks and how this trigger is stronger for individuals whose rank is higher.

Socially interdependent risk taking

We report the results of an experiment on how individual risk taking clusters together when subjects are informed of peers' previous risk taking decisions. Subjects are asked how much of their endowment they wish to allocate in a lottery in which there is a 50% chance the amount they invest will be tripled and a 50% chance their investment will be lost. We use a 2 × 2 factorial design varying: (i) whether the subjects initially observed high or low investment social anchors, (ii) whether information about the investment decisions of other subjects in their social group is provided. We find strong evidence that individuals' risk taking decisions are malleable to that of their peers, which in turn leads to social clustering of risk taking. Social anchors shape initial risk taking, with mean investment then converging to a high level across treatments.

Supplementary Information

The online version contains supplementary material available at 10.1007/s11238-023-09927-x.

Psychological, social and cognitive resources and the mental wellbeing of the poor

Our study takes advantage of unique data to quantify deficits in the psychosocial and cognitive resources of an extremely vulnerable subpopulation–those experiencing housing vulnerability–in an advanced, high-income country (Australia). Groups such as these are often impossible to study using nationally representative data sources because they make up a small share of the overall population. We show that those experiencing housing vulnerability sleep less well, have more limited cognitive functioning, and less social capital than do those in the general population. They are also less emotionally stable, less conscientious, more external, and more risk tolerant. Collectively, these deficits in psychosocial and cognitive resources account for between 24–42% of their reduced life satisfaction and their increased mental distress and loneliness. These traits also account for a large proportion of the gap in mental wellbeing across different levels of housing vulnerability.

Exploring the risk-taking tendency among migrant workers in the COVID-19 pandemic: The role of ontological security

BACKGROUND

The COVID-19 pandemic has changed the social environment of most laborers around the world and has profoundly affected people's ontological security and behavior choices. Among them, the migrant workers are one of the groups most affected by the pandemic.

OBJECTIVE

This study explored the mechanism of the impact of the scarcity of ontological security caused by the pandemic on the risk-taking tendency of migrant workers in China through two studies.

METHODS

This study adopts two experimental method, with 514 participants in the first study and 357 participants in the second study.

RESULTS

The results show that the pandemic-induced scarcity perception of ontological security promotes their risk-taking tendency, and the migrant workers' cognitive reflection ability, sense of unfairness and expected benefits play a significant mediating role in this process. The scarcity perception of ontological security promotes migrant workers' risk-taking tendency by reducing the cognitive reflection ability, triggering the sense of unfairness and overstating expected benefits.

CONCLUSIONS

The conclusion of this study can help migrant workers, enterprises and government to avoid potential workplace and social bad behavior.

Gender differences in the effects of competition and cooperation on risk-taking under ambiguity

Decision theories have made a distinction between risk (i.e., known probabilities) and ambiguity (i.e., unknown probabilities). Prior work has examined the effect of competition and cooperation on risk-taking under risk. However, little is known about whether and how competition and cooperation affect risk-taking under ambiguity and the role of gender in this effect. The current study addresses this research gap. In the present study, a shortened version of a balloon analogue risk task was used to assess risk-taking under ambiguity. The participants completed this task in competition against a peer, in cooperation with a peer, or alone. The results showed that the participants took more risks in the competition and cooperation conditions than in the individual condition, but no differences were found between the competition and cooperation conditions. More important, gender modulated these effects. First, these effects were driven by males, but not by females. Second, males showed more risk-taking under ambiguity than females in the competitive situation, but not in the cooperative situation. Overall, this work contributes to understanding the effect of social interaction on risky decisions under ambiguity.

Translating concepts of risk and loss in rodent models of gambling and the limitations for clinical applications

Gambling involves placing something of value at risk in exchange for the opportunity to potentially gain something of greater value in return. A variety of gambling paradigms have been designed to study the maladaptive decision-making that underlies problematic gambling. Central to these gambling models are the definitions of "risk" and "loss", especially when translating the results from rodent studies to clinical applications. Risk and loss are not mutually exclusive but rather share some overlap. With careful interpretation and consideration of the limitations of these behavioral paradigms, results from rodent models may provide insights into the neurobiology of risky decision-making that leads to problematic gambling in humans.

Embodied Capital and Risk-Related Traits, Attitudes, Behaviors, and Outcomes: An Exploratory Examination of Attractiveness, Cognitive Ability, and Physical Ability

The relative state model posits two nonindependent pathways to risk. The need-based pathway suggests people take risks when nonrisky options are unlikely to meet their needs. The ability-based pathway suggests people take risks when they possess resources or abilities making them more capable of successfully “pulling off” risk-taking. Growing laboratory and field evidence supports need-based risk-taking. However, little is known about ability-based risk-taking. We examined whether three indicators of embodied capital (attractiveness, cognitive ability, and physical dexterity) were associated with risk-related personality traits, risk-attitudes, behavioral risk-taking, and outcomes associated with risk-taking. Among 328 community members recruited to maximize variance on risk-propensity, we demonstrate that embodied capital indices predict various instantiations of risk-propensity consistent with the relative state model.

Team status conflict

Status conflicts, defined as disputes over people's relative status positions in their group's social hierarchy, are a common feature of groups and organizations. Despite their prevalence, there is still much about the process of status conflict that is not well understood. Here, we review the primary antecedents of status conflict, their impact on team functioning, and directions for future research.

Feel Safe to Take More Risks? Insecure Attachment Increases Consumer Risk-Taking Behavior

Attachment styles, originated from early childhood experience, have been documented to influence human behaviors among adults. Drawing on life history theory, we examined whether or not, and how, attachment styles impact risk-taking behaviors beyond evolutionary valid domains, and explored the moderation role of parental status. In the consumer behavior context, three correlational studies provide convergent evidence that insecurely attached (vs. securely attached) consumers are more risk-taking in consumption situations like dining in a toilet-themed restaurant or buying genetically modified products. Specifically, insecurely attached consumers were more likely to take risks in two experiential purchase scenarios (Study 1) and this effect was not domain-specific (Study 2). In Study 3, we showed that safety perception mediated the relationship between attachment insecurity and risk-taking, which was manifested by purchase intentions toward genetically modified products. Specifically, insecurely attached individuals perceived genetically modified products to be safer and were more willing to make a purchase. Additionally, parental status moderates the relationship (Studies 2 and 3). We conclude with a discussion on the implications of attachment theory on consumer risk-taking behaviors from a life history perspective.

The Influence of Competition on Motivation to Fake in Employment Interviews

Abstract. Many applicants fake, or intentionally misrepresent information, in employment interviews. Recent theories of faking propose that applicants may fake more when there are situational cues that signal intense competition for the job. We tested this proposition by manipulating the number of competitors and selection ratio in selection scenarios, and assessed individuals’ faking intentions. We also examined whether Honesty-Humility moderated the relation between competition and faking intentions. Hypotheses were tested using a between-subjects study with 775 participants. Results show that faking intentions increased with few competitors and a small selection ratio. Honesty-Humility did not moderate the relation between competition and faking intentions. Findings support competition as a situational predictor of faking intentions, lending support to models of faking.

Saliency modulates behavioral strategies in response to social comparison

Social comparison has been found to affect humans in many aspects including outcome evaluation, emotional reaction, and decision-making. Here, two experiments were conducted using a gambling task involving monetary gains and losses (absolute outcome: win/loss), whereby participants' outcome was either better or worse than the outcome of a paired player (relative outcome: better/worse). The results of experiment 1 showed that participants switched more frequently after absolute losses compared with absolute gains, consistent with previous studies showing a win-stay lose-shift heuristic in repeated decision-making. Participants also adopted a better-stay worse-switch strategy where they switched more often after worse outcomes than better outcomes when compared with others, demonstrating that the win-stay lose-shift rule is extended to social comparison situations. In Experiment 2, through manipulating visual saliency, we replicated these findings and further demonstrated that decision making is influenced by emphasizing either the absolute (gain/loss) or relative (better/worse) aspect of the outcomes. Our research indicates that attentional modulation of information orchestrates social comparison, possibly by changing how each aspect of the information is weighted. These findings reinforce the idea that attention influences higher-level decision making by changing the weighting of each decisional dimension.

Interpersonal Insecurity and Risk-Taking Propensity Across Domains and Around the Globe

During social interactions, individuals frequently experience interpersonal insecurity, including feelings of not being loved, protected, trusted, or cared for; these feelings cause numerous behavioral consequences. The present research explores the relationship between interpersonal insecurity and risk-taking propensity in multiple risk domains and around the globe based on risk-sensitivity theory and research on group identity. In Study 1, participants ( N = 209) reported their interpersonal insecurity and risk-taking propensity across seven risk domains. The results show that risk-taking propensity generally increases with interpersonal insecurity. However, this relationship was negative in the cooperation domain and null in the financial domain. In Study 2 ( N = 128,162), data from the World Values Survey from 77 countries reveal a positive correlation between risk-taking propensity and interpersonal insecurity with in-group members but a negative relationship between risk-taking propensity and interpersonal insecurity with out-group members.

Does stress mediate the association between personal relative deprivation and gambling?

Evidence has linked subjective feelings of personal relative deprivation with general gambling involvement and problem gambling tendencies. In turn, problem gambling tendencies have been linked with a wide array of damaging physical and mental health consequences. It has been theorized that the deleterious effects of perceived inequality on mental and physical health operate at the individual level through the experience of personal relative deprivation leading to psychosocial stress. We empirically examined whether the experience of perceived stress contributes to explaining the deprivation-gambling link using cross-sectional, self-reported survey data collected from a crowdsourced population of adults (n = 565). Results indicate that personal relative deprivation is associated with problem gambling tendencies (but not general gambling involvement) and that this association is mediated by perceived stress. These associations were particularly strong among participants who reported non-zero levels of problem gambling tendencies. Together, our results further emphasize the importance of individual-level social comparison reactions in the context of health.

Evolution of risk preference is determined by reproduction dynamics, life history, and population size

Alternative behavioral strategies typically differ in their associated risks, meaning that a different variance in fitness-related outcomes characterizes each behavior. Understanding how selection acts on risk preference is crucial to interpreting and predicting behavior. Despite much research, most theoretical frameworks have been laid out as optimization problems from the individual's perspective, and the influence of population dynamics has been underappreciated. We use agent-based simulations that implement competition between two simple behavioral strategies to illuminate effects of population dynamics on risk-taking. We explore the effects of inter-generational reproduction dynamics, population size, the number of decisions throughout an individual's life, and simple alternate distributions of risk. We find that these factors, very often ignored in empirical and theoretical studies of behavior, can have significant and non-intuitive impacts on the selection of alternative behavioral strategies. Our results demonstrate that simple rules regarding predicted risk preference do not hold across the complete range of each of the factors we studied; we propose intuitive interpretations for the dynamics within each regime. We suggest that studies of behavioral strategies should explicitly take into account the species' life history and the ecological context in which selection acted on the risk-related behavior of the organism of interest.

Income Inequality and Adolescent Gambling Severity: Findings from a Large-Scale Italian Representative Survey

Background: Studies have shown that problems related to adult gambling have a geographical and social gradient. For instance, adults experiencing gambling-related harms live in areas of greater deprivation; are unemployed, and have lower income. However, little is known about the impact of socioeconomic inequalities on adolescent problem gambling. The main purpose of the present study was to investigate the contextual influences of income inequality on at-risk or problem gambling (ARPG) in a large-scale nationally representative sample of Italian adolescents. A secondary aim was to analyze the association between perceived social support (from family, peers, teachers, and classmates) and ARPG. Methods: Data from the 2013-2014 Health Behavior in School-aged Children Survey (HBSC) Study was used for cross-sectional analyses of ARPG. A total of 20,791 15-year-old students completed self-administered questionnaires. Region-level data on income inequality (GINI index) and overall wealth (GDP per capita) were retrieved from the National Institute of Statistics (Istat). The data were analyzed using the multi-level logistic regression analysis, with students at the first level and regions at the second level. Results: The study demonstrated a North-South gradient for the prevalence of ARPG, with higher prevalence of ARPG in the Southern/Islands/Central Regions (e.g., 11% in Sicily) than in Northern Italy (e.g., 2% in Aosta Valley). Students in regions of high-income inequality were significantly more likely than those in regions of low-income inequality to be at-risk or problem gamblers (following adjustment for sex, family structure, family affluence, perceived social support, and regionale wealth). Additionally, perceived social support from parents and teachers were negatively related to ARPG. Conclusions: Income inequality may have a contextual influence on ARPG. More specifically, living in regions of highest income inequality appeared to be a potential factor that increases the likelihood of becoming an at-risk or problem gambler. Findings of the study suggest that wealth distribution within societies affected by economic policies may indirectly have an influence adolescent gambling behaviors.

Justifying Decisions

Abstract. Prior research has found that people prefer impoverished over enriched options. However, individuals make decisions either for themselves or for others every day. The present research investigates how and why the decision target (self or other) influences preferences for impoverished and enriched options. We hypothesized and found that participants who made choices for others preferred impoverished over enriched options more than those who made choices for themselves (Studies 1 and 2) because the former group believed that they should justify their decisions to others more than the latter group (Study 2). Overall, the current research sheds light on self–other differences in the trade-off between impoverished and enriched options, as well as the role of justification in this effect.

The Relative State Model: Integrating Need-Based and Ability-Based Pathways to Risk-Taking

Who takes risks, and why? Does risk-taking in one context predict risk-taking in other contexts? We seek to address these questions by considering two non-independent pathways to risk: need-based and ability-based. The need-based pathway suggests that risk-taking is a product of competitive disadvantage consistent with risk-sensitivity theory. The ability-based pathway suggests that people engage in risk-taking when they possess abilities or traits that increase the probability of successful risk-taking, the expected value of the risky behavior itself, and/or have signaling value. We provide a conceptual model of decision-making under risk-the relative state model-that integrates both pathways and explicates how situational and embodied factors influence the estimated costs and benefits of risk-taking in different contexts. This model may help to reconcile long-standing disagreements and issues regarding the etiology of risk-taking, such as the domain-generality versus domain-specificity of risk or differential engagement in antisocial and non-antisocial risk-taking.

Inequality and Risk-Taking

Inequality has been associated with risk-taking at the societal level. However, this relationship has not been directly investigated at the individual level. Risk-sensitivity theory predicts that decision makers should increase risk-taking in situations of disparity between one's present state and desired state. Economic inequality creates such a disparity. In two experiments, we examined whether imposed economic inequality affects risk-taking. In Experiment 1, we examined whether victims of inequality engaged in greater risk-taking compared to beneficiaries of inequality and those not experiencing inequality. In Experiment 2, we examined whether ameliorating inequality for victims reduced risk-taking. In both experiments, victims of inequality engaged in greater risk-taking compared to beneficiaries of inequality and those not experiencing inequality. Among victims, amelioration of inequality contributed to decreased risk-taking. These findings provide further evidence in support of risk-sensitivity theory and suggest that reductions in economic inequality may lead to lower risk-taking.

The relation between personal relative deprivation and the urge to gamble among gamblers is moderated by problem gambling severity: a meta-analysis

One psychosocial factor that has been identified to motivate gambling is personal relative deprivation (PRD), which refers to resentment stemming from the belief that one is deprived of a desired and deserved outcome compared to some referent. Although several lines of evidence point to a positive association between PRD and the urge to gamble, the factors that might moderate this relation have yet to be investigated. Through a quantitative research synthesis, we sought to test (a) the overall relation between PRD and gambling urges among people reporting recent gambling experience, and (b) whether this relation is moderated by problem gambling severity. Meta-analysis revealed that, overall, higher self-reported PRD was associated with stronger urges to gamble (r=.26). A meta-regression revealed that, across studies, the strength of this relation depended on problem gambling severity, such that the relation between PRD and gambling urges was stronger among samples higher in average problem gambling severity. This pattern was corroborated by an analysis of the aggregated individual participant data (N=857), such that PRD predicted gambling urges only among participants higher in problem gambling severity. The potential practical implications and limitations of these results are discussed.

Decision-Making Under Risk: Integrating Perspectives From Biology, Economics, and Psychology

Decision-making under risk has been variably characterized and examined in many different disciplines. However, interdisciplinary integration has not been forthcoming. Classic theories of decision-making have not been amply revised in light of greater empirical data on actual patterns of decision-making behavior. Furthermore, the meta-theoretical framework of evolution by natural selection has been largely ignored in theories of decision-making under risk in the human behavioral sciences. In this review, I critically examine four of the most influential theories of decision-making from economics, psychology, and biology: expected utility theory, prospect theory, risk-sensitivity theory, and heuristic approaches. I focus especially on risk-sensitivity theory, which offers a framework for understanding decision-making under risk that explicitly involves evolutionary considerations. I also review robust empirical evidence for individual differences and environmental/situational factors that predict actual risky decision-making that any general theory must account for. Finally, I offer steps toward integrating various theoretical perspectives and empirical findings on risky decision-making.