Abstract

Several years ago, Cohen et al. (1958) demonstrated that under the influence of alcohol drivers became more risk prone, although their risk perception remained unchanged. Research shows that ambiguity aversion is to some extent positively correlated with risk aversion, though not very highly (Camerer and Weber, 1992). The question addressed by the present research is whether alcohol reduces ambiguity aversion. Our research was conducted in a natural setting (a restaurant bar), where customers with differing levels of alcohol intoxication were offered a choice between a risky and an ambiguous lottery. We found that alcohol reduced ambiguity aversion and that the effect occurred in men but not women. We interpret these findings in terms of the risk-as-value hypothesis, according to which, people in Western culture tend to value risk, and suggest that alcohol consumption triggers adherence to socially and culturally valued patterns of conduct different for men and women.

Highlights

  • Several years ago, Cohen et al (1958) demonstrated that drivers became more risk prone under the influence of alcohol

  • It is suggested by several studies that it is an increase in outcome desirability rather than an increase in perceived feasibility of the outcome that is responsible for heightened propensity to take risk under the influence of alcohol

  • Steele and Josephs (1990) explain changes in behavior under the influence of alcohol by referring to cognitive processing impairment. They claim that alcohol leads to “myopia” i.e., narrowing of the attention and focusing on the most salient features of the situation

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Summary

Introduction

Several years ago, Cohen et al (1958) demonstrated that drivers became more risk prone under the influence of alcohol. The findings of Cohen et al (1958) could be interpreted as indicating that alcohol consumption triggers adherence to socially and culturally valued patterns of conduct, and leads to a real-life increase in willingness to take risks.

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