Financial scarcity and one’s income have long been studied in relation to people’s financial risk-taking behaviors. In recent years, however, a more recent concept has been introduced in the field...Show moreFinancial scarcity and one’s income have long been studied in relation to people’s financial risk-taking behaviors. In recent years, however, a more recent concept has been introduced in the field of economic psychology research, perceived financial scarcity, which refers to one’s subjective perception of their own financial standing. Considering its novelty, perceived financial scarcity has not been the subject of much research, and its relation to risky behavior even less so. The purpose of this study was to explore the associations between perceived financial scarcity and two dimensions of risk behavior, risk preference and risk tolerance, as well as observe the potential moderating effect of gender on these relationships. Using a sample of 100 participants recruited through an online platform, the results of our research indicated positive associations between risk preference and risk tolerance, in addition to a significant relationship between perceived financial scarcity and risk tolerance. Interestingly, no gender differences were found when testing risk preferences with perceived financial scarcity, while a significant effect of gender was uncovered for the association between perceived financial scarcity and risk tolerance. The results of the study can hopefully provide more clarity regarding the differences between risk preference and risk tolerance, in addition to providing more information that could break down harmful gender stereotypes.Show less
Financial scarcity and one’s income have long been studied in relation to people’s financial risk-taking behaviors. In recent years, however, a more recent concept has been introduced in the field...Show moreFinancial scarcity and one’s income have long been studied in relation to people’s financial risk-taking behaviors. In recent years, however, a more recent concept has been introduced in the field of economic psychology research, perceived financial scarcity, which refers to one’s subjective perception of their own financial standing. Considering its novelty, perceived financial scarcity has not been the subject of much research, and its relation to risky behavior even less so. The purpose of this study was to explore the associations between perceived financial scarcity and two dimensions of risk behavior, risk preference and risk tolerance, as well as observe the potential moderating effect of gender on these relationships. Using a sample of 100 participants recruited through an online platform, the results of our research indicated positive associations between risk preference and risk tolerance, in addition to a significant relationship between perceived financial scarcity and risk tolerance. Interestingly, no gender differences were found when testing risk preferences with perceived financial scarcity, while a significant effect of gender was uncovered for the association between perceived financial scarcity and risk tolerance. The results of the study can hopefully provide more clarity regarding the differences between risk preference and risk tolerance, in addition to providing more information that could break down harmful gender stereotypes.Show less
This paper conducted research on the relationship between scarcity and risk-taking, as well as how this relationship is moderated by neuroticism. The study employed established questions and tasks...Show moreThis paper conducted research on the relationship between scarcity and risk-taking, as well as how this relationship is moderated by neuroticism. The study employed established questions and tasks used in peer-reviewed papers. The study differed between the concepts risk tolerance and risk preference. Multiple linear regression was used to analyse the data, which was performed in SPSS. After analysing the data it was concluded that scarcity and risk-taking have a positive relationship when tested with the risk-tolerance variable. For the risk preference variable this effect was only present if gender was controlled. Neuroticism also moderates the effect of financial scarcity on risk-taking for the risk-tolerance variable, but not the risk-preference variable. It was found that neuroticism weakens the relationship between scarcity and risk- taking. The study contributes to literature about the effect of neuroticism on the tendency to take or avoid risks, as well as the literature on how scarcity can increase the tendency to take risks in practical setting such as treating those with gambling addictions or tendency to overspend. The paper was limited by its risk preference measure, which did not properly simulate a risk-reward scenario, contrary to the risk tolerance measure.Show less
Considering the many children around the world that live in financially scarce conditions, it is of importance to know the consequences with regard to cognition. Life history theory suggests people...Show moreConsidering the many children around the world that live in financially scarce conditions, it is of importance to know the consequences with regard to cognition. Life history theory suggests people growing up in these scarce circumstances might develop different ways of adapting to this environment. This study looks at the influence of childhood financial scarcity on cognitive performance, when a current mindset of financial scarcity is activated. Specifically, this research is focused on determining performance on inhibition and cognitive switching tasks for people with different scarcity backgrounds and mindsets. In order to test this, people were questioned about their childhood. Then, half of the participants was instructed to recall a scarcity-related memory, while others recalled a neutral memory. Finally participants were presented with a cognitive task, which measured either inhibition or cognitive switching. It was expected that in a current scarcity mindset, people that had a scarcity background would perform lower on inhibition, but higher on switching. According to the results, neither childhood scarcity, current scarcity mindset, nor the combination of the two, were significant predictors of performance on the cognitive tasks. On these grounds, further research is needed to determine the relation between scarcity and cognition.Show less
Since the dissolution of the Soviet Union, Central Asia has seen less conflict than initially expected. One of the anticipated sources of conflict has been the uneven distribution of natural...Show moreSince the dissolution of the Soviet Union, Central Asia has seen less conflict than initially expected. One of the anticipated sources of conflict has been the uneven distribution of natural resources between the five states. The theory of the relationship between resource abundance and scarcity and conflict are examined here and applied to the distribution of hydrocarbon and water resources in the region. Though especially water has become a serious issue in the region, it is concluded that it is as yet not acute enough to spark interstate conflict and dependence management policies that might spark internal conflict is largely not followed. However, should the situation continue to worsen or be compounded with other causes for conflict, this status quo may change.Show less
