Two recent models of risky decision making developed by Fishburn (Fishbijrn, P. C. 1977. Mean-risk analysis with risk associated with below-target returns. Amer. Econ. Rev. 67 116--126.) and by Kahneman and Tversky (Kahneman, D., A. Tversky. 1979. Prospect theory: an analysis of decisions under...

This Note extends the work reported in Payne, Laughhunn, and Crum (Payne, J. W., D. J. Laughhunn, R. Crum. 1980. Translation of gambles and aspiration level effects in risky choice behavior. Management Sci. 26 1039--1060.) on the need to incorporate a target return, reference point, or...

This paper reports on the risk preferences for below target returns of 224 managers from the U.S. Canada, and Europe. When only non-ruinous losses were involved, 71% of the managers were risk seeking for below target returns. The distribution of risk preferences tended to be stable over a wide...

It has been suggested in the economics literature that strongly risk-averse individuals may tend to gravitate toward large monopolistic firms rather than work for more competitive companies. In this article we provide results of an experiment designed to test this hypothesis. Operating managers...