Risk-seeking

In economics and finance, a risk-seeker or risk-lover is a person who has a preference for risk. While most investors are considered risk averse, one could view casino-goers as risk-seeking. If offered either $50 or a 50% each chance of either $100 or nothing, a risk-seeking person would prefer the gamble even though the gamble and the sure thing have the same expected value. In economics and finance, a risk-seeker or risk-lover is a person who has a preference for risk. While most investors are considered risk averse, one could view casino-goers as risk-seeking. If offered either $50 or a 50% each chance of either $100 or nothing, a risk-seeking person would prefer the gamble even though the gamble and the sure thing have the same expected value. Risk-seeking behavior can be observed in the negative domain x < 0 {displaystyle x<0} for prospect theory value functions, where the functions are convex for x < 0 {displaystyle x<0} but concave for x > 0 {displaystyle x>0} . In a study done by Friedman et al. (1995), they found significant evidence to support that low childhood conscientiousness contributed heavily to adulthood mortality. Those who were high in conscientiousness as a child were 30% less likely to die in their adulthood. Ultimately, their findings solidified that low levels of childhood conscientiousness predict risk seeking, and risk-seeking increases the chance of accidental death. Though risk-seeking deteriorates with age, risky exposure to abusive substances in adolescence can lead to lifetime risk factors due to addiction. Conscientious individuals are subject to greater internal impulse control which lets them think out risky decisions more carefully, while those low on conscientiousness are more likely to endanger themselves and others by risky, or sometimes even criminal behaviour. The psychometric paradigm explores what stable personality traits and risk behaviours have in common with an individualistic approach. Zuckerman's (1994) sensation seeking theory is important in assessing the causative factors of certain risk-seeking behaviours. Many risk-seeking behaviours justify humans need for sensation seeking. Behaviours like adventurous sports, drug use, promiscuous sex, entrepreneurship, gambling, and dangerous driving to name a few both represent sensation seeking, as well as risk seeking. Impulsivity has been linked to risk-seeking and can be described as the desire to indulge in situations with a potential reward, and little to no planning of the potential punishments of loss or reward. Impulsivity has also been linked to sensation seeking and in recent theories have been combined to form a higher order trait called impulsive sensation seeking.