Power, testosterone, and risk-taking (original) (raw)
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Power, Risk, and the Status Quo: Does Power Promote Riskier or More Conservative Decision Making?
Two experiments suggest that the experience of power can interact with a person’s level of power motivation to produce effects on risky decision making. In Study 1, assignment to a position of power increased risk taking among participants with low levels of power motivation but reduced risk taking among participants with high levels of power motivation. In Study 2, participants high in power motivation again made more conservative decisions, but only under circumstances in which the dominance hierarchy was unstable and there was potential for losing their power. When power was irrevocable and participants’ choices had no bearing on their ability to retain power, both high and low power-motivated participants responded by making riskier decisions. Findings suggest that although power may generally lead to riskier decisions, power may lead to more conservative decisions among power-motivated individuals, especially when the status quo is perceived to be in jeopardy.
Sociology Compass, 2017
We conduct an extensive review of the literature on testosterone and economic risk‐taking behavior. In sum, there is evidence of a positive association between testosterone and economic risk taking, although it is unlikely to be a strong association given the abundance of null results. However, we argue that the existing literature may overstate the causal effects of testosterone on economic risk taking (or even report a spurious correlation) because this research has not considered the potentially confounding role of social status. Status could concurrently influence both testosterone and economic risk taking, given that testosterone is a social hormone with a reciprocal relationship with social status, and social status has been found to drive risk‐taking behavior. We also argue against using findings from this literature to make gender essentialist claims, primarily because social phenomena influence the size—and existence— of gender differences in economic risk‐taking behavior. We conclude with suggestions for future research.
Organizing Effects of Testosterone and Economic Behavior: Not Just Risk Taking
PLoS ONE, 2011
Recent literature emphasizes the role that testosterone, as well as markers indicating early exposure to T and its organizing effect on the brain (such as the ratio of second to fourth finger, 2D : 4D), have on performance in financial markets. These results may suggest that the main effect of T, either circulating or in fetal exposure, on economic behavior occurs through the increased willingness to take risks. However, these findings indicate that traders with a low digit ratio are not only more profitable, but more able to survive in the long run, thus the effect might consist of more than just lower risk aversion. In addition, recent literature suggests a positive correlation between abstract reasoning ability and higher willingness to take risks. To test the two hypotheses of testosterone on performance in financial activities (effect on risk attitude versus a complex effect involving risk attitude and reasoning ability), we gather data on the three variables in a sample of 188 ethnically homogeneous college students (Caucasians). We measure a 2D : 4D digit ratio, abstract reasoning ability with the Raven Progressive Matrices task, and risk attitude with choice among lotteries. Low digit ratio in men is associated with higher risk taking and higher scores in abstract reasoning ability when a combined measure of risk aversion over different tasks is used. This explains both the higher performance and higher survival rate observed in traders, as well as the observed correlation between abstract reasoning ability and risk taking. We also analyze how much of the total effect of digit ratio on risk attitude is direct, and how much is mediated. Mediation analysis shows that a substantial part of the effect of T on attitude to risk is mediated by abstract reasoning ability.
2021
The sex steroid hormone testosterone regulates male-typical behaviors such as aggression and displays of dominance in non-human animals. According to the Challenge Hypothesis, these effects arise from context-sensitive testosterone increases that facilitate inter-male competitions over resources, status, and mates. A growing literature documents similar effects of testosterone on economic behaviors related to competition and risk-taking in humans, though findings to date have been mixed. Here, we report two randomized double-blind placebo-controlled testosterone administration experiments, whose combined sample (N = 334) is substantially larger than any previous investigation of the topic (N1 = 91, N2 = 243). The studies were designed independently by research groups in Europe and the US, and both investigated testosterone’s effects on men’s willingness to compete, confidence, and risk-taking—dimensions of economic behavior that are theoretically linked to the Challenge Hypothesis, ...
Power, Risk, and the Status Quo
Personality and Social Psychology Bulletin, 2007
Two experiments suggest that the experience of power can interact with a person's level of power motivation to produce effects on risky decision making. In Study 1, assignment to a position of power increased risk taking among participants with low levels of power motivation but reduced risk taking among participants with high levels of power motivation. In Study 2, participants high in power motivation again made more conservative decisions, but only under circumstances in which the dominance hierarchy was unstable and there was potential for losing their power. When power was irrevocable and participants' choices had no bearing on their ability to retain power, both high and low power-motivated participants responded by making riskier decisions. Findings suggest that although power may generally lead to riskier decisions, power may lead to more conservative decisions among power-motivated individuals, especially when the status quo is perceived to be in jeopardy.
Low-and high-testosterone individuals exhibit decreased aversion to economic risk
2011
Abstract Testosterone is positively associated with risk-taking behavior in social domains (eg, crime, physical aggression). However, the scant research linking testosterone to economic risk preferences presents inconsistent findings. We examined the relationship between endogenous testosterone and individuals' economic preferences (ie, risk preference, ambiguity preference, and loss aversion) in a large sample (N= 298) of men and women.
Hormones and Behavior, 1999
This study tested the hypothesis that implicit power motivation moderates individuals' testosterone responses to the anticipated success in and actual outcome of a dominance contest. Salivary testosterone levels were assessed in 42 male students at the beginning of the study, after they had imagined a success in an ensuing power contest, and immediately after the contest had taken place. Contest outcome (winning or losing against a competitor on a speed-based task) was varied experimentally. Participants' power motive was assessed with a picture-story exercise, in which an assertive, personalized (p Power) component was distinguished from an altruistic, socialized (s Power) component. In contrast to all other participants, individuals high only in p Power (a) had elevated testosterone after imagining a success in a subsequent dominance contest and (b) continued to have high testosterone levels after actually winning, but not after losing, the contest.
Decision making and testosterone: When the ends justify the means
2010
Behavioral endocrinology research suggests that testosterone may play a role in moral decision making. Studies involving human and nonhuman animals indicate that high basal testosterone is associated with decreased aversion to risk and an increased threshold for conflict, fear, stress, and threat. We tested the role of testosterone in moral decision making. We predicted and found that individuals high in testosterone are more likely to make utilitarian decisions-specifically when doing so involves acts of aggression and social cost.
Evolution and Human Behavior, 2008
Relative social status strongly regulates human behavior, yet this factor has been largely ignored in research on risky decision-making. Humans, like other animals, incur risks as they compete to defend or improve their standing in a social group. Among men, access to culturally important resources is a locus of intrasexual competition and a determinant of status. Thus, relative status should affect men's motivations for risk in relevant domains. Contrasting predictions about such effects were derived from dominance theory and risk-sensitive foraging theory. Experiments varied whether subjects thought they were being observed and evaluated by others of lower, equal, or higher status, and whether decisions involved resources (status relevant) or medical treatments (status irrelevant). Across two experiments, men who thought others of equal status were viewing and evaluating their decisions were more likely to favor a high risk/high gain means of recouping a monetary loss over a no risk/low gain means with equal expected value. Supporting predictions from dominance theory, this motivation for risk-taking appeared only in the equal status condition, only for men, and only for resource loss problems. Taken together, the results support the idea that motivational systems designed to negotiate a status-saturated social world regulate the cognitive processes that generate risky decision-making in men.
Frontiers in behavioral neuroscience, 2017
Digit ratio (2D:4D) and facial width-to-height ratio (WHR) are supposedly static indicators of testosterone exposition during prenatal and pubertal lifetime, respectively. Both measures have been linked to aggressive and assertive behavior in laboratory economic games, as well as in real world scenarios. Most of the research-often limited to male subjects-considers the associations between these behaviors, traits, and hormonal markers separately for 2D:4D and WHR. Reported associations are weak and volatile. In the present study we had independent raters assess 2D:4D and WHR in a sample of = 175 participants who played the ultimatum game (UG). Respondent behavior in UG captures the tendency to reject unfair offers (negative reciprocity). If unfair UG offers are seen as provocations, then individuals with stronger testosterone exposition may be more prone to reject such offers. Economists argue that negative reciprocity reflects altruistic punishment, since the rejecting individual i...