Risk‐Taking and the Media

In recent years, media formats with risk‐glorifying content, such as video games that simulate illegal street racing (“bang and crash” games), films about extreme sports, and risky stunts have emerged as top sellers of the media industry. A variety of recent studies conducted by several researchers revealed that exposure to risk‐glorifying media content (e.g., video games that simulate reckless driving, smoking and drinking in movies, or depictions that glorify extreme sports) increases the likelihood that recipients will show increased levels of risk‐taking inclinations and behaviors. The present article (1) reviews the latest research on the detrimental impact of risk‐glorifying media on risk‐taking inclinations (cognitions, emotions, behaviors), (2) puts these findings in the theoretical context of recent sociocognitive models on media effects, and (3) makes suggestions to science and policymakers on how to deal with these effects in the future.     

Human and Nature‐Caused Hazards: The Affect Heuristic Causes Biased Decisions

People are more concerned about the negative consequences of human hazards compared with natural hazards. Results of four experiments show that the same negative outcome (e.g., number of birds killed by an oil spill) was more negatively evaluated when caused by humans than when caused by nature. Results further show that when identical risk information was provided, participants evaluated nuclear power more negatively compared with solar power. The affect associated with the hazard per se influenced the interpretation of the new information. Furthermore, the affect experienced in the situation fully mediated the evaluation of the negative outcomes of a hazard. People's reliance on the affect heuristic is a challenge for acceptance of cost‐benefit analyses because equally negative outcomes are differently evaluated depending on the cause. Symbolically significant information and the affect evoked by this information may result in biased and riskier decisions.     

When Precaution Creates Misunderstandings: The Unintended Effects of Precautionary Information on Perceived Risks,the EMF Case

In the past decade, growing public concern about novel technologies with uncertain potential long‐term impacts on the environment and human health has moved risk policies toward a more precautionary approach. Focusing on mobile telephony, the effects of precautionary information on risk perception were analyzed. A pooled multinational experimental study based on a 5 × 2 × 2 factorial design was conducted in nine countries. The first factor refers to whether or not information on different types of precautionary measures was present, the second factor to the framing of the precautionary information, and the third factor to the order in which cell phones and base stations were rated by the study participants. The data analysis on the country level indicates different effects. The main hypothesis that informing about precautionary measures results in increased risk perceptions found only partial support in the data. The effects are weaker, both in terms of the effect size and the frequency of significant effects, across the various precautionary information formats used in the experiment. Nevertheless, our findings do not support the assumption that informing people about implemented precautionary measures will decrease public concerns.     

You Have Been Framed! How Antecedents of Information Need Mediate the Effects of Risk Communication Messages

This study investigates the processes that mediate the effects of framing flood risks on people's information needs. Insight into the effects of risk frames is important for developing balanced risk communication that explains both risks and benefits of living near water. The research was inspired by the risk information seeking and processing model and related models. In a web‐based survey, respondents (n = 1,457) were randomly assigned to one of three communication frames or a control frame (experimental conditions). Each frame identically explained flood risk and additionally refined the message by emphasizing climate change, the quality of flood risk management, or the amenities of living near water. We tested the extent to which risk perceptions, trust, and affective responses mediate the framing effects on information need. As expected, the frames on average resulted in higher information need than the control frame. Attempts to lower fear appeal by stressing safety or amenities instead of climate change were marginally successful, a phenomenon that is known as a “negativity bias.” Framing effects were mediated by negative attributes (risk perception and negative affect) but not by positive attributes (trust and positive affect). This finding calls for theoretical refinement. Practically, communication messages will be more effective when they stimulate risk perceptions and evoke negative affect. However, arousal of fear may have unwanted side effects. For instance, fear arousal could lead to lower levels of trust in risk management among citizens. Regular monitoring of citizens’ attitudes is important to prevent extreme levels of distrust or cynicism.     

Insights into Flood Risk Misperceptions of Homeowners in the Dutch River Delta

Flooding is one of the most significant natural disasters worldwide. Nevertheless, voluntary take-up of individual damage reduction measures is low. A potential explanation is that flood risk perceptions of individual homeowners are below objective estimates of flood risk, which may imply that they underestimate the flood risk and the damage that can be avoided by damage reduction measures. The aim of this article is to assess possible flood risk misperceptions of floodplain residents in the Netherlands, and to offer insights into factors that are related with under- or overestimation of perceived flood risk. We analyzed survey data of 1,848 homeowners in the Dutch river delta and examine how perceptions of flood probability and damage relate to objective risk assessments, such as safety standards of dikes, as well as heuristics, including the availability heuristic and the affect heuristic. Results show that many Dutch floodplain inhabitants significantly overestimate the probability, but underestimate the maximum expected water level of a flood. We further observe that many respondents apply the availability heuristic.     

The Influence of Feelings While Driving Regular Cars on the Perception and Acceptance of Self‐Driving Cars

Self‐driving vehicles will affect the future of transportation, but factors that underlie perception and acceptance of self‐driving cars are yet unclear. Research on feelings as information and the affect heuristic has suggested that feelings are an important source of information, especially in situations of complexity and uncertainty. In this study (N = 1,484), we investigated how feelings related to traditional driving affect risk perception, benefit perception, and trust related to self‐driving cars as well as people's acceptance of the technology. Due to limited experiences with and knowledge of self‐driving cars, we expected that feelings related to a similar experience, namely, driving regular cars, would influence judgments of self‐driving cars. Our results support this assumption. While positive feelings of enjoyment predicted higher benefit perception and trust, negative affect predicted higher risk and higher benefit perception of self‐driving cars. Feelings of control were inversely related to risk and benefit perception, which is in line with research on the affect heuristic. Furthermore, negative affect was an important source of information for judgments of use and acceptance. Interest in using a self‐driving car was also predicted by lower risk perception, higher benefit perception, and higher levels of trust in the technology. Although people's individual experiences with advanced vehicle technologies and knowledge were associated with perceptions and acceptance, many simply have never been exposed to the technology and know little about it. In the absence of this experience or knowledge, all that is left is the knowledge, experience, and feelings they have related to regular driving.     

General Probability‐Time Tradeoff and Intertemporal Risk‐Value Model

This article proposes an intertemporal risk‐value (IRV) model that integrates probability‐time tradeoff, time‐value tradeoff, and risk‐value tradeoff into one unified framework. We obtain a general probability‐time tradeoff, which yields a formal representation form to reflect the psychological distance of a decisionmaker in evaluating a temporal lottery. This intuition of probability‐time tradeoff is supported by robust empirical findings as well as by psychological theory. Through an explicit formalization of probability‐time tradeoff, an IRV model taking into account three fundamental dimensions, namely, value, probability, and time, is established. The object of evaluation in our framework is a complex lottery. We also give some insights into the structure of the IRV model using a wildcatter problem.     

The Value of a Statistical Life for Risk‐Averse and Risk‐Seeking Individuals

This article estimates the value of a statistical life (VSL) for Chile under the hedonic wage method while accounting for individual risk preferences. Two alternative measures of risk aversion are used. First, risk aversion is directly measured using survey measures of preferences over hypothetical gambles, and second, over observed individual behaviors that may proxy for risk preferences, such as smoking status, are used. I reconcile the results with a theoretical model of economic behavior that predicts how the wage‐risk tradeoff changes as risk aversion differs across individuals. The VSL estimates range between 0.61 and 8.68 million dollars. The results using smoking behavior as a proxy for risk attitudes are consistent with previous findings. However, directly measuring risk aversion corrects the wage‐risk tradeoff estimation bias in the opposite direction. The results are robust to other observed measures of risk aversion such as drinking behavior and stock investments. Results suggest that, consistent with the literature that connects smoking behavior with labor market outcomes, smoking status could be capturing poor health productivity effect in addition to purely risk preferences.     

Consumer Responses to Integrated Risk‐Benefit Information Associated with the Consumption of Food

The risk analysis of the health impact of foods is increasingly focused on integrated risk‐benefit assessment, which will also need to be communicated to consumers. It therefore becomes important to understand how consumers respond to integrated risk‐benefit information. Quality‐adjusted‐life‐years (QALYs) is one measure that can be used to assess the balance between risks and benefits associated with a particular food. The effectiveness of QALYs for communicating both positive and negative health effects associated with food consumption to consumers was examined, using a 3 × 2 experiment varying information about health changes in terms of QALYs associated with the consumption of fish (n = 325). The effect of this information on consumer perceptions of the usefulness of QALYs for describing health effects, on risk and benefit perceptions, attitudes, and intentions to consume fish was examined. Results demonstrated that consumers perceived QALYs as useful for communicating health effects associated with food consumption. QALYs communicated as a net effect were preferred for food products associated with negative net effects on health, while separate communication of both risks and benefits may be preferred for food products associated with positive or zero net health effects. Information about health changes in terms of QALYs facilitated informed decision making by consumers, as indicated by the impact on risk and benefit perceptions as intended by the information. The impact of this information on actual food consumption choices merits further investigation.     

Expert and Public Perception of Risk from Biotechnology

Risk perceptions of a series of biotechnology applications were examined in a public (nonexpert) sample and an expert sample. Compared with the experts, the public perceived all biotechnology applications as more risky. Both groups perceived food-related applications to be riskier than medical applications. Compared with the public, experts perceived both food and medical applications as less harmful and more useful. Experts also judged the risks posed from medical biotechnology applications as more familiar and acknowledged by people and science. Lay estimates of the risk of food applications were predicted by potential harm, potential benefits, science knowledge, and familiarity; experts' estimates were predicted only by harm and benefits. Lay estimates of the risk of medical applications were predicted by potential harm; experts' estimates were predicted by potential benefits, number and type of people exposed, and science knowledge. We discuss the implications of the results for risk communication about and management of different types of biotechnologies.     

The Role of the Affect and Availability Heuristics in Risk Communication

Results of past research suggest that affect plays an important role in risk perception. Because affect may also increase the availability of risks, affect and availability are closely related concepts. Three studies tested the hypothesis that evoking negative affect (fear), either through past experience or through experimental manipulation, results in greater perceived risk. The present research focused on perception of flooding risk. Study 1 and Study 2 showed that participants who received risk information concerning a longer time period (e.g., 30 years) perceived more danger compared with participants who received risk information for one year. Study 2 showed that the interpretation of risk information was influenced by participants' own experiences with flooding. In Study 3, affect was experimentally manipulated. After looking at photographs depicting houses in a flooded region, participants perceived greater risk compared with participants in a control group. Taken together, the results of these three studies suggest that affect is important for successful risk communication. Results of the present research are in line with the affect heuristic proposed by Slovic and colleagues.     

A Tiered Approach for Risk‐Benefit Assessment of Foods

Risk‐benefit analyses are introduced as a new paradigm for old problems. However, in many cases it is not always necessary to perform a full comprehensive and expensive quantitative risk‐benefit assessment to solve the problem, nor is it always possible, given the lack of required date. The choice to continue from a more qualitative to a full quantitative risk‐benefit assessment can be made using a tiered approach. In this article, this tiered approach for risk‐benefit assessment will be addressed using a decision tree. The tiered approach described uses the same four steps as the risk assessment paradigm: hazard and benefit identification, hazard and benefit characterization, exposure assessment, and risk‐benefit characterization, albeit in a different order. For the purpose of this approach, the exposure assessment has been moved upward and the dose‐response modeling (part of hazard and benefit characterization) is moved to a later stage. The decision tree includes several stop moments, depending on the situation where the gathered information is sufficient to answer the initial risk‐benefit question. The approach has been tested for two food ingredients. The decision tree presented in this article is useful to assist on a case‐by‐case basis a risk‐benefit assessor and policymaker in making informed choices when to stop or continue with a risk‐benefit assessment.     

Determinants of Seeking and Avoiding Risk‐Related Information in Times of Crisis

This research is designed to provide insight into the psychological (e.g., threat appraisal or coping appraisal) and other determinants (e.g., information quality judgments or demographics) of risk information seeking or avoidance in times of an acute risk, as part of the process of increasing public resilience through adherence to risk mitigating advice. Data were collected via telephone interviews. A specialized agency interviewed 1,000 Dutch citizens, randomly confronted with one of eight fictitious, but realistic, acute risk and emergency situations. Results indicate that information seeking in an acute situation is anticipated by a less elaborate set of predictors (age and risk perception) than information seeking in a nonacute situation (age and risk perception, as well as educational level and social norm). Although risk perception is a predictor for risk information seeking, its predictive value for acute‐risk‐related behavior, as one might have assumed based on theories such as protection motivation theory (PMT) or the extended parallel process model (EPPM), appears to be limited. Implications for risk communication are discussed.     

Modeling Risk‐Related Knowledge in Tunneling Projects

Knowledge on failure events and their associated factors, gained from past construction projects, is regarded as potentially extremely useful in risk management. However, a number of circumstances are constraining its wider use. Such knowledge is usually scarce, seldom documented, and even unavailable when it is required. Further, there exists a lack of proven methods to integrate and analyze it in a cost‐effective way. This article addresses possible options to overcome these difficulties. Focusing on limited but critical potential failure events, the article demonstrates how knowledge on a number of important potential failure events in tunnel works can be integrated. The problem of unavailable or incomplete information was addressed by gathering judgments from a group of experts. The elicited expert knowledge consisted of failure scenarios and associated probabilistic information. This information was integrated using Bayesian belief‐networks‐based models that were first customized in order to deal with the expected divergence in judgments caused by epistemic uncertainty of risks. The work described in the article shows that the developed models that integrate risk‐related knowledge provide guidance as to the use of specific remedial measures.     

Coordination of Supply Chains with Risk‐Averse Agents

The extant supply chain management literature has not addressed the issue of coordination in supply chains involving risk‐averse agents. We take up this issue and begin with defining a coordinating contract as one that results in a Pareto‐optimal solution acceptable to each agent. Our definition generalizes the standard one in the risk‐neutral case. We then develop coordinating contracts in three specific cases: (i) the supplier is risk neutral and the retailer maximizes his expected profit subject to a downside risk constraint; (ii) the supplier and the retailer each maximizes his own mean‐variance trade‐off; and (iii) the supplier and the retailer each maximizes his own expected utility. Moreover, in case (iii), we show that our contract yields the Nash Bargaining solution. In each case, we show how we can find the set of Pareto‐optimal solutions, and then design a contract to achieve the solutions. We also exhibit a case in which we obtain Pareto‐optimal sharing rules explicitly, and outline a procedure to obtain Pareto‐optimal solutions.     

Offenders’ Risk‐Taking Attitude Inside and Outside the Prison Walls

It has long been assumed that risk taking is closely associated with criminal behavior. One reason for placing criminals behind bars—aside from punishment and protecting the public—is to prevent them from engaging in further risky criminal activities. Limited attention has been paid to whether being inside or outside prison affects offenders’ risk‐taking behaviors and attitudes. We compared risk‐taking behaviors and attitudes in five risk domains (ethical, financial, health/safety, recreational, social) among 75 incarcerated offenders (i.e., offenders who are currently in prison) and 45 ex‐offenders (i.e., offenders who have just been released from prison). Ex‐offenders reported higher likelihood of engaging in risky behavior, driven largely by a willingness to take more risks in the recreational and ethical domains. Benefits attributed to risk taking as well as risk perception did not differ between incarcerated and ex‐offenders, indicating that the opportunity to take risks might underlie behavioral risk intentions. Our results also indicate that risk‐taking activities are better predicted by the expected benefits rather than by risk perception, aside from the health/safety domain. These results highlight the importance of studying the person and the environment and examining risk taking in a number of content domains.     

Media Disaster Reporting Effects on Public Risk Perception and Response to Escalating Tornado Warnings: A Natural Experiment

Previous research has evaluated public risk perception and response to a natural hazards in various settings; however, most of these studies were conducted either with a single scenario or after a natural disaster struck. To better understand the dynamic relationships among affect, risk perception, and behavioral intentions related to natural disasters, the current study implements a simulation scenario with escalating weather intensity, and includes a natural experiment allowing comparison of public response before and after a severe tornado event with extensive coverage by the national media. The current study also manipulated the display of warning information, and investigated whether the warning system display format influences public response. Results indicate that (1) affect, risk perception, and behavioral intention escalated as weather conditions deteriorated, (2) responses at previous stages predicted responses at subsequent stages of storm progression, and (3) negative affect predicted risk perception. Moreover, risk perception and behavioral intention were heightened after exposure to the media coverage of an actual tornado disaster. However, the display format manipulation did not influence behavioral responses. The current study provides insight regarding public perception of predisaster warnings and the influence of exposure to media coverage of an actual disaster event.     

Risk‐Based Sampling: I Don't Want to Weight in Vain

Recently, there has been considerable interest in developing risk‐based sampling for food safety and animal and plant health for efficient allocation of inspection and surveillance resources. The problem of risk‐based sampling allocation presents a challenge similar to financial portfolio analysis. Markowitz (1952) laid the foundation for modern portfolio theory based on mean‐variance optimization. However, a persistent challenge in implementing portfolio optimization is the problem of estimation error, leading to false “optimal” portfolios and unstable asset weights. In some cases, portfolio diversification based on simple heuristics (e.g., equal allocation) has better out‐of‐sample performance than complex portfolio optimization methods due to estimation uncertainty. Even for portfolios with a modest number of assets, the estimation window required for true optimization may imply an implausibly long stationary period. The implications for risk‐based sampling are illustrated by a simple simulation model of lot inspection for a small, heterogeneous group of producers.     

Risk‐Informed Regulation and Safety Management of Nuclear Power Plants—On the Prevention of Severe Accidents

There are four operating nuclear power plant (NPP) units in Finland. The Teollisuuden Voima (TVO) power company has two 840 MWe BWR units supplied by Asea‐Atom at the Olkiluoto site. The Fortum corporation (formerly IVO) has two 500 MWe VVER 440/213 units at the Loviisa site. In addition, a 1600 MWe European Pressurized Water Reactor supplied by AREVA NP (formerly the Framatome ANP—Siemens AG Consortium) is under construction at the Olkiluoto site. Recently, the Finnish Parliament ratified the government Decision in Principle that the utilities' applications to build two new NPP units are in line with the total good of the society. The Finnish utilities, Fenno power company, and TVO company are in progress of qualifying the type of the new nuclear builds. In Finland, risk‐informed applications are formally integrated in the regulatory process of NPPs that are already in the early design phase and these are to run through the construction and operation phases all through the entire plant service time. A plant‐specific full‐scope probabilistic risk assessment (PRA) is required for each NPP. PRAs shall cover internal events, area events (fires, floods), and external events such as harsh weather conditions and seismic events in all operating modes. Special attention is devoted to the use of various risk‐informed PRA applications in the licensing of Olkiluoto 3 NPP.     

Risk‐Cost‐Benefit Analysis for Transportation Corridors with Interval Uncertainties of Heterogeneous Data

Access management, which systematically limits opportunities for egress and ingress of vehicles to highway lanes, is critical to protect trillions of dollars of current investment in transportation. This article addresses allocating resources for access management with incomplete and partially relevant data on crash rates, travel speeds, and other factors. While access management can be effective to avoid crashes, reduce travel times, and increase route capacities, the literature suggests a need for performance metrics to guide investments in resource allocation across large corridor networks and several time horizons. In this article, we describe a quantitative decision model to support an access management program via risk‐cost‐benefit analysis under data uncertainties from diverse sources of data and expertise. The approach quantifies potential benefits, including safety improvement and travel time savings, and costs of access management through functional relationships of input parameters including crash rates, corridor access point densities, and traffic volumes. Parameter uncertainties, which vary across locales and experts, are addressed via numerical interval analyses. This approach is demonstrated at several geographic scales across 7,000 kilometers of highways in a geographic region and several subregions. The demonstration prioritizes route segments that would benefit from risk management, including (i) additional data or elicitation, (ii) right‐of‐way purchases, (iii) restriction or closing of access points, (iv) new alignments, (v) developer proffers, and (vi) etc. The approach ought to be of wide interest to analysts, planners, policymakers, and stakeholders who rely on heterogeneous data and expertise for risk management.