IESE Insight

Probability or Price? Form Matters When it Comes to Risk

People's risk attitudes are different when presented with bounded numbers vs. unbounded ones.

July 9, 2018

Whether or not you go out on a limb may depend on how the numbers are presented.

IESE's Johannes Müller-Trede investigates the difference between a percentage and a numerical value in shaping risk attitudes — and offers up some practical applications.

Probability or Price? Form Matters When it Comes to Risk from IESE Business School