Risk attitude as discussed in this article is a stable intrinsic preference and is
analogous to the definition of risk preference. Risk preference is conceived on
a continuum from risk avoiding to risk seeking (Weber et al., 2002; Weber &
Milliman, 1997). Although numerous studies have defined risk attitude as rooted
in the expected utility (EU) framework as the shape of utility function (Pennings
& Smidts, 2000), this is not consistent with the definition used in this article.
The major distinction is that the risk attitude derived from the EU framework
is a combination of the strength of preference the individual feels for certain
outcomes as well as attitude towards risk (Pennings & Smidts). The former
component is akin to marginal value for the outcomes of risky choices in the view of Weber et al. (2002). This component causes the risk attitude derived from the
EU framework to be unstable across situations and domains. Accordingly, risk
attitude represents a spectrum of risk preference from complete risk aversion to
complete risk seeking