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We examine how perceived similarity between sequential risks affects individuals’ risk-taking behavior. Specifically, in six studies we find that in sequential choice settings individuals exhibit significant positive state dependence in risk-taking: they are more likely to take a risk when it is similar to a previously taken risk than when it is dissimilar. O ur  results demonstrate that the similarity structures that exist between risks have a significant effect on risk-taking preferences in dynamic choice settings.



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Iyer
Iyer
Multi-market Value Creation and Competition

Dr. Ganesh Iyer, Professor, University of California, Berkeley, Haas School of Business

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