Abstract
This study analyzes the impact of the risk of consequence on the demand for continuous online assurance (COA) when making repetitive valuation and choice decisions. Participants in four laboratory settings choose whether to purchase COA to aid in making repetitive decisions. One valuation and one choice setting each offer COA at its mean price of indifference while two other settings price COA substantially lower (at a greater risk of consequence). Participants are compensated for making correct decisions while minimizing purchases. Results indicate that COA demand is (1) greater and more consistent when making repetitive valuation decisions than choice decisions, especially with an increase in risk of consequence, (2) greater and more consistent when making repetitive valuation decisions with an increase in the risk of consequence, but (3) only marginally greater when making repetitive choice decisions with an increase in the risk of consequence. The impact of these results on the development of COA is discussed.
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