Risk preferences in future military leaders
Bell, P; Engel, R; Hudson, D; et al.Jamison, J; Skimmyhorn, W
Date: 1 December 2018
Journal
Journal of Behavioral Economics for Policy
Publisher
Society for the Advancement of Behavioral Economics
Related links
Abstract
Although hundreds of studies have demonstrated that risk preferences shape people’s choices under uncertainty,
the complexity of how attitudes toward risk play out across various pivotal settings and key populations leaves
considerable gaps in knowledge. We study a unique sample of a cohort of future military leaders at the United
States ...
Although hundreds of studies have demonstrated that risk preferences shape people’s choices under uncertainty,
the complexity of how attitudes toward risk play out across various pivotal settings and key populations leaves
considerable gaps in knowledge. We study a unique sample of a cohort of future military leaders at the United
States Military Academy (West Point), nearly all of whom now hold commissions in the US Army officer corps.
Using a hypothetical instrument to elicit preferences across a variety of domains, we find that cadets are risk
averse, on average, which has potentially important implications for future management of military conflicts
and programs. Our results also show that diversity programs aimed at increasing the number of women and
minorities at West Point are likely to increase the average level of risk aversion within the officer corps. This
finding suggests that working with officers to strengthen cognitive flexibility and to be attuned to a possible wedge
between their innate preferences and the needs of the situation may be important, particularly for those who
wish to enter occupational fields where the willingness to take risks is critical.
Economics
Faculty of Environment, Science and Economy
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