Chapter 10 Risk tool

Introduction

In this interactive element you will get a chance to experience the Risktool and its components as addressed in chapter 10 and originally studied by Kaufmann, Weber, & Haisley (2013). In total there are four paradigms presented called Risktool, Experience, Description, and Distribution. Each presents you with a hypothetical investment scenario that allows you to allocate your money across a riskless and risky investment option. The paradigms differ in how they inform you about the possible consequences of your investment decisions. Here you can try each paradigm. In fact, we hope that you try out each so that you can compare your own behavior in the four paradigms. We will also show you a chart comparing the behavior of past participants in the original set of experiments as well as to visitors to this website.