The Impact Of Aging On Risk Preference Under Different Types Of Feedback

With the global aging,the decision-making preferences of the elderly and their influencing factors have an important impact on personal life and social economy.In real life,the purchase of stock funds by the elderly,the consumption of health care products,and the temptation to face MLM usually involve a second decision,that is,affected by the feedback of the previous decision.Therefore,exploring the age difference of the impact of feedback on risk appetite can help us better understand the decision-making mechanism of the elderly,and also help solve the actual problems of investment and financial management and deception of the elderly in real life.Exploring the impact of feedback types on age differences in risk preference has further explored how cognitive aging affects decision-making.Investigating the impact of the feedback value gains and losses on the age difference in risk preference provides a new perspective to verify the sensitivity of the elderly and young people to gains and losses.The subjects of this study are the elderly group of 60 to 75 years old and the young group of 18 to 25 years old.Participants were required to perform risk decisionmaking tasks,and three independent variables were controlled: the type of feedback after the decision(partial feedback,complete feedback),profit and loss(gain,loss)and feedback value(high,medium,and low).The results found that:(1)The main effect of the feedback type is marginal,and people will be more conservative when the feedback is complete.(2)Decision makers who are conservative in partial feedback will be more risky in complete feedback,while decision makers who take risk in partial feedback will be more conservative in complete feedback.(3)The phenomenon that the risk appetite in the complete feedback stage is more concentrated than that in the partial feedback stage is only significant among young people,while the edge of the elderly is significant.It shows that the elderly are less affected by the type of feedback than the young.(4)The main effect of the feedback value is significant,but in the case of loss,the difference in the feedback value of the elderly is not significant.(5)The main effect of the elderly’s gains and losses is marginal,and the elderly are more adventurous in the case of income.The above results indicate that the risk appetite of the elderly may be less affected by the type of feedback than the young due to cognitive aging.The elderly are more sensitive to loss,supporting the loss prevention hypothesis and the positivity hypothesis.The elderly are more risky in the case of gains than in the case of losses,indicating that they rely more on emotional processing in decision-making.The above reveals the reasons why the elderly are more likely to be deceived,and also provides practical guidance for the elderly to invest in financial management:Compared with the young,it may be more beneficial to provide the elderly with less information about other products.