Decision-making in Positive and Negative ...

This study is an examination of: (a) whether individuals are risk averse in positive prospects and risk seekers in negative prospects, and (b) whether certainty and affectivity determine the choices in prospects. Four hundred undergraduate and graduate students of the Indian Institute of Technology Kharagpur participated in this study. Standard questions were used to assess the responses to prospects, certainty in choice, and positive and negative affectivity. Findings suggest that in positive prospects, individuals are risk averse with the availability of a certain option and risk seekers with availability of two uncertain options of nearly equal value. In contrast to the preference for gain in positive prospects, individuals prefer to avoid loss and are risk seekers in negative prospects. They express more confidence in choices preferred by the majority. The interactive effects of certainty and affectivity determine choices. Certainty interacting with low positive affectivity influenced the decision in two problems and high certainty interacting with high negative affectivity influenced the decision in six problems. While certainty indicating information possession and processing is a consistent predictor of choices, neither affectivity nor the interaction of affectivity with certainty do so.