riskitaluvuse

Riskitaluvuse is a theoretical construct in decision science and risk management that describes how individuals assign value to risky outcomes by integrating probability, potential loss or gain, and the perceived emotional significance of the outcome. It emphasizes that utility is not purely monetary or probabilistic but also affective and contextual.

The term was introduced in a 2018 interdisciplinary workshop on behavioral risk assessment held at the Institute for Applied Decision Making. It is not a standard term in mainstream economics, but it is used in some niche studies to highlight non-quantitative factors in risk evaluation.

Its core components include risk magnitude (the potential gain or loss), probability, time horizon, and affective utility (emotional impact, such as fear or thrill). The framework posits that these elements interact nonlinearly, producing riskier choices when emotional engagement increases perceived utility of outcomes.

Researchers studying riskitaluvuse use mixed methods, combining quantitative risk questionnaires with qualitative interviews to assess how people translate feelings into judgments about risk. Some approaches adapt utility estimation methods to capture affective weightings, rather than relying solely on traditional expected utility.

Applications appear in risk communication, consumer finance, and health decision making. Critics note that riskitaluvuse is ill-defined and overlaps with existing theories such as prospect theory and utility theory; its practical value depends on clear operationalization of affective utility and consistent measurement.