To Take a Risk or Not? The Effect of Perceived Scarcity on Risky Choices

Studies suggest that resource scarcity leads to risky behaviors. From a cognitive perspective, a scarcity mindset affects the decision-making process. Does perceived scarcity therefore affect risk taking when making decisions? This study (N = 213) was conducted in western China to examine the effect of perceived scarcity on risky choices. Our results revealed that participants in the scarcity condition tended to be more risk averse than participants in the control condition when making a risky decision. Perceived scarcity increased the probability of choosing the safe option that offered a sure gain. The effect of psychological variables (emotion, risk attitude, personality, impulsivity, self-control and ego depletion) on risky choices was also tested. Risk attitude, urgency in impulsivity, and deliberate action in self-control also influence risky choices.

Automated summary

A study suggests that resource scarcity leads to risky behaviors. From a cognitive perspective, a scarcity mindset affects the decision-making process. This study conducted in western China examines the effect of perceived scarcity on risky choices. The results reveal that participants in the scarcity condition tend to be more risk averse and prefer safe options.