Risk-taking to restore negative self-view: The effect of autonomy and subjective business on financial risk-taking

Abstract

This study examines the influence of autonomy on consumers’ financial risk-taking. Building on various streams of marketing and social psychology literature, we propose that low (vs. high) autonomy increases financial risk-taking, whereas busyness reverses this effect. We further demonstrate that an increased desire for power and status mediates the effect of low autonomy on financial risk-taking. However, in the presence of subjective busyness, highly autonomous consumers are more risk-taking because of an increased sense of power. Five studies, including one involving real money, are conducted to provide empirical support for these predictions.