Risk—The Known Unknowns
Lecture no. 7 from the course: Behavioral Economics: When Psychology and Economics Collide
Taught by Professor Scott Huettel | 28 min | Categories: The Great Courses Plus Online Economics & Finance Courses
Tolerance for risk is another fundamental element of decision making. Learn how behavioral economics evaluates “risk aversion” and “risk seeking” in both economic and personal contexts, and grasp the role of perceived benefits and perceived risks in explaining risk-taking behavior and choices. Finally, study two basic principles for managing risk.