The Influence of Physical Elevation in Buildings on Risk Preferences: Evidence from a Pilot and Four Field Studies

Abstract

Little empirical research has been reported on the role of spatial positioning inside buildings on consumer behavior. Based on embodied cognition literature, we propose that elevation from street level influences risk preferences. In a pilot study and four field studies involving financial decisions with both hypothetical and real payoffs, we find evidence that high physical elevation increases risk‐seeking tendencies. Furthermore, we demonstrate that elevation leads to riskier behavior by increasing sensitivity to power. Finally, we establish a boundary condition for the impact of elevation on risk preferences by demonstrating that the effect attenuates when accessibility of physical elevation is low. These findings show that a subtle environmental parameter—physical elevation from street level—can influence human psychological states and consequently affect decisions.