Higher risk exposure in gains brings more risk-taking in losses: an experimental study.

Past experiences play a key role in shaping risk preferences. Several experimental studies have found that the impact of antecedent risk exposure on subsequent risk-taking behaviour varies across domains, but a gap still exists in the literature with respect to how this dynamic is shaped by gains and losses. This paper experimentally reveals that exposure to a higher level of risk in the gain domain makes individuals more risk-taking in the subsequent loss domain and vice versa. [ABSTRACT FROM AUTHOR]