Behavior in Risky Decisions: Focus on Risk Defusing

In experiments on risky decisions with gambles as alternatives the central factors determining decision behaviour are: The subjective values of the outcomes, and their subjective probability. The present paper first reports results of a number of experiments indicating that this central result cannot be generalized. In quasi-realistic risky scenarios, many decision makers are not interested in probability information and many search actively for risk-defusing operators (RDOs). An RDO is an action intended by the decision maker to be performed additionally to a specific alternative in order to decrease the risk. The paper also gives an overview about experimental research with RDOs. Topics include the factors that determine the search for RDOs and the factors affecting the acceptance of an RDO. Finding an acceptable RDO has a distinct effect on choice: If for a specific risky alternative an RDO is available, this alternative is chosen most often. The consequences of the concept of RDOs on theories about decision behaviour and on aiding decision making are discussed. Expectations to find usable probability information and to find information about the existence of an RDO are also discussed as factors explaining differences between different types of decision situations and gambles.