How Subject And Situation Factor Effect The Risk Decision Behavior

In the part of theory summary, I review the contemporary risky decision-making theories. At the base of the two main genres, which are rational and irrational decision-making theories, I discuss and analyze their advantages and disadvantage, especially for the prospect theory. Then I review the papers, which are discussing the relationship between the factor of characteristics in risk situation and the factor of risk-taking tendency, or how the subject variables affect risk-taking tendency. In the experiment 1, it focuses on how the subject variables affect risk-taking tendency and validating the prospect theory under lottery situation. In the experiment 2, it focuses on the relationship between the characteristics in risk situation and the factor of risk-taking tendency.