Uncertainty, Risk, Income, and Decision-Making

Abstract

This paper explores the relationship between risky decision-making and intolerance of uncertainty, particularly in relation to the psychological mindset of “wealthiness.” A survey-based experimental design involving participants (N=336) who categorize themselves as either ”wealthy” or ”not so wealthy” was employed, examining an individual’s tolerance to uncertainty and proneness to engage in risk-taking scenarios. Results suggested that worrying about finances, regardless of it being warranted, was associated with higher intolerance to uncertainty and lower risk-taking, highlighting the role of emotion in decision-making. This paper contributes to the understanding of how wealth perception influences decision-making processes, particularly under ambiguous conditions, by correlating these self-assessments with behavioral measures.