Let's Call it Quits: Break‐Even Effects in the Decision to Stop Taking Risks

“Chasing” behavior, whereby individuals, driven by a desire to break even, continue a risky activity (RA) despite incurring large losses, is a commonly observed phenomenon. We examine whether the desire to break even plays a wider role in decisions to stop engaging in financially motivated RA in a naturalistic setting. We test hypotheses, motivated by this research question, using a large data set: 707,152 transactions of 5,379 individual financial market spread traders between September 2004 and April 2013. The results indicate strong effects of changes in wealth around the break‐even point on the decision to cease an RA. An important mediating factor was the individual's historical long‐term performance. Those with a more profitable trading history were less affected by a fall in cash balance below the break‐even point compared to those who had been less profitable. We observe that break‐even points play an important role in the decision of nonpathological risk takers to stop RAs. It is possible, therefore, that these nonpathological cognitive processes, when occurring in extrema, may result in pathological gambling behavior such as “chasing.” Our data set focuses on RAs in financial markets and, consequently, we discuss the implications for institutions and regulators in the effective management of risk taking in markets. We also suggest that there may be a need to consider carefully the nature and role of “break‐even points” associated with a broader range of nonfinancially‐focused risk‐taking activities, such as smoking and substance abuse.     

Growing Pains: How Risk Perception and Risk Communication Research Can Help to Manage the Challenges of Global Population Growth

In 2011, the global human population reached 7 billion and medium variant projections indicate that it will exceed 9 billion before 2045. Theoretical and empirical perspectives suggest that this growth could lead to an increase in the likelihood of adverse events (e.g., food shortages, climate change, etc.) and/or the severity of adverse events (e.g., famines, natural disasters, etc.). Several scholars have posited that the size to which the global population grows and the extent to which this growth increases the likelihood of adverse outcomes will largely be shaped by individuals’ decisions (in households, organizations, governments, etc.). In light of the strong relationship between perceived risk and decision behaviors, it is surprising that there remains a dearth of empirical research that specifically examines the perceived risks of population growth and how these perceptions might influence related decisions. In an attempt to motivate this important strand of research, this article examines the major risks that may be exacerbated by global population growth and draws upon empirical work concerning the perception and communication of risk to identify potential directions for future research. The article also considers how individuals might perceive both the risks and benefits of population growth and be helped to better understand and address the related issues. The answers to these questions could help humanity better manage the emerging consequences of its continuing success in increasing infant survival and adult longevity.     

Hope Floats: African American Women's Survival Experiences after Katrina

This article describes how 15 African American women 18 to 55 years of age coped with traumatic life events during and in the aftermath of Hurricane Katrina. The study's main question is how did African American women cope with traumatic events during and following Hurricane Katrina? Second, we explore how the intersection of race, gender, and social class influenced their experiences. An exploratory design of primary and secondary data using grounded theory methods generates a mid-level theory about resilience, spirituality and coping among Black women in the aftermath of the storm.     

Toward an Understanding of the Influence of Cultural Background and Domain Experience on the Effects of Risk‐Pricing Formats on Risk Perception

Risk‐information framing can be a powerful tool for aiding the communication of risk and improving decision making. However, little work has investigated the extent that these framing effects depend on the characteristics of the perceiver. In our study, we examine whether the effects of different risk‐pricing formats on risky choices are the same for all individuals, no matter their domain experience or cultural background, or whether there are interactions between these factors. Survey 1 revealed that three risk‐pricing formats of the same choice problem resulted in the same individuals making different risky choices (preference reversal), suggesting that risk perception was distorted by the risk‐pricing format manipulation. In Survey 2, the effects of the risk‐pricing formats were shown to differ by the participants’ cultural background (Asian vs. European) and the extent of their domain experience. The fact that there were no differences between the cultural or domain experience groups in their overall tendency to select riskier (cf. safer) choices indicates that risk behavior differences between groups are often closely linked to perceptual, rather than simply attitudinal, cognitive processes. The results demonstrate the complex, interactive cognitive processes that are used to encode risk information, involving the framing of the information and the cultural background and previous experiences of the individual. We conclude that it is important to consider the characteristics of the individual (e.g., culture, domain experience, etc.) when manipulating risk‐information framing with the aim of improving risk communication.     

Helping Individuals to Understand Synergistic Risks: An Assessment of Message Contents Depicting Mechanistic and Probabilistic Concepts

Accumulating evidence shows that certain hazard combinations interact to present synergistic risks. However, little is known about the most effective ways of helping individuals to understand this complex risk concept. More specifically, there is an absence of empirical research that has assessed the relative efficacy of messages that explain either the causal mechanism and/or the probabilistic components of synergistic risks. In an experiment designed to address this issue, we presented participants with messages concerning the synergistic risk of developing esophageal cancer for individuals who consume both tobacco and alcohol. Relative to a control group, we compared the extent to which messages featuring content detailing the underlying biological mechanism, the probabilistic risk, or both improved understanding of the synergistic risk. Our results showed that messages containing details of both the mechanism and probabilistic information were most effective at enabling individuals to understand that the alcohol‐tobacco combination presents a synergistic risk. In addition, large improvements in the accuracy of cancer frequency estimates were observed amongst individuals who received probabilistic information, and the highest relative increase in professed willingness to adopt precautionary behaviors was observed amongst individuals who received the mechanism information only. Importantly, these findings could be utilized in the development of a general model for the communication of synergistic risks. Furthermore, in contrast to previous findings, our study demonstrates that risk messages can be both effective and efficient in helping individuals to acquire a greater understanding of synergistic risks. Acquiring such knowledge could lead to significant improvements in risk‐related decisions concerning combined hazards.     

Guest Editorial―An Update to the Role and Status of Women in Social Work Education: Past and Future Considerations

ABSTRACT

Spirituality and religion predicted the development of social justice orientation (SJO) among young adults in a previous study (Chenot &; Kim, 2013). The current study explores the manner in which the effects of spirituality and religion on social justice orientation vary depending on the career aspirations of young adults. The longitudinal data (two waves) used for this study was gathered from 14,527 students at 136 universities in the USA. Results of structural equation modeling analyses revealed that spirituality significantly predicted projected SJO behaviors among those who aspire to join the helping professions and the SJO attitudes of those who sought to join other professions. The implications of the findings for social work and social work education are discussed.     

And Some of Us Are Braver: Stress and Coping Among African American Women

African American women fulfill many roles within their family and community. Most notably, these women are often defined by their “strength” and rarely seen as “vulnerable.” Many African American women demonstrate strength as they struggle to maintain employment, raise children, and nurture spouses and extended family, but these same women are at risk for a higher rate of health and emotional problems. In this article, the authors use relational cultural, stress and coping, and lifespan theories, along with Black feminist thought to discuss the interlocking effects of race, gender, and class regarding the psychological well-being of African American women 18 to 55 years old. We conclude with a discussion of research, practice, and teaching implications.     

Do People Believe Combined Hazards Can Present Synergistic Risks?

The risk attributable to some hazard combinations can be greater than the sum of the risk attributable to each constituent hazard. Such "synergistic risks" occur in several domains, can vary in magnitude, and often have harmful, even life-threatening, outcomes. Yet, the extent to which people believe that combined hazards can present synergistic risks is unclear. We present the results of two experimental studies aimed at addressing this issue. In both studies, participants examined synergistic and additive risk scenarios, and judged whether these were possible. The results indicate that the proportion of people who believe that synergistic risks can occur declines linearly as the magnitude of the synergistic risk increases. We also find that people believe, despite scientific evidence to the contrary, that certain hazard combinations are more likely to present additive or weakly synergistic risks than synergistic risks of higher magnitudes. Furthermore, our findings did not vary as a simple function of hazard domain (health vs. social), but varied according to the characteristics of the specific hazards considered (specified vs. unspecified drug combinations). These results suggest that many people's beliefs concerning the risk attributable to combined hazards could lead them to underestimate the threat posed by combinations that present synergistic risks, particularly for hazard combinations that present higher synergistic risk magnitudes. These findings highlight a need to develop risk communications that can effectively increase awareness of synergistic risks.     

Drivers of Corporate Social Responsibility Attitudes: The Demography of Socially Responsible Investors

Demographic characteristics of socially responsible investors (SRIs) are likely to play a significant role in shaping their perceptions and behaviour concerning corporate social responsibility (CSR). This paper identifies demographic characteristics of SRIs and explores the relationship of these characteristics with their CSR attitudes. We analyse, using generalized ordered logistic regression, the questionnaire responses of 2464 SRIs from 20 countries. The results demonstrate that younger and female SRIs are more likely to believe that a company's social and environmental performance is as important as its financial performance. Female SRIs and those with high incomes are the most likely to believe that companies should be as responsible to their shareholders as to the broader society. In addition, younger SRIs, those with high incomes and those who have attained higher education levels regard socially responsible companies as at least as profitable as other companies. The benefits which companies can derive from understanding the demographic profile of SRIs are examined, including a potentially lower cost of capital, improved CSR rankings and business policy formulation and communication consistent with CSR views held by specific groups of SRIs.     

When the Floods of Compassion Are not Enough: A Nation's and a City's Response to the Evacuees of Hurricane Katrina

Hurricane Katrina exposed serious deficiencies in the social support safety net at the federal, state, and local level. This article explores the impacts of the disrupted safety net through participant observation and interviews with service providers and evacuees resettled in one southern city. Their stories illustrate how vulnerable low‐income groups struggle to cope with disaster within the context of inadequate larger support systems and the legacy of racism. The data also illustrate the limits of the local resources and response, given the years of retrenchment and underfunding and increasing dependence on nongovernmental sources of support. The authors explore some of the implications of this trend for evacuees' long‐term recovery and social work intervention.