Behavioral Models of Risk Taking in Business Decisions: A Survey and Evaluation.

This article evaluates alternative descriptive models of individual risk-taking behavior in business decisions based upon a review of experimental studies. The authors develop a classification scheme of alternative risky choice models. The models differ in the "risk" construct employed and the manner in which it is combined with other parameters. They also evaluate the evidence concerning the validity of those models as predictors of actual business decision behavior. Furthermore, the authors discuss the existence of individual and situational differences in risk-taking behavior and their importance in the choice between models and the generalizability of their conclusions to decisions made in group contexts.