Cumulative lifetime stressor exposure assessed by the STRAIN predicts economic ambiguity aversion

Abstract

Uncertainty is inherent in most decisions humans make. Economists distinguish between two types of decision-making under non-certain conditions: those involving risk (i.e., known outcome probabilities) and those that involve ambiguity (i.e., unknown outcome probabilities). Prior research has identified individual differences that explain risk preferences, but little is known about factors associated with ambiguity aversion. Here, we hypothesized that cumulative exposure to major psychosocial stressors over the lifespan might be one factor that predicts individuals’ ambiguity aversion. Across two studies (Study 1: n = 58, M_age = 25.7; Study 2: n = 188, M_age = 39.81), we used a comprehensive lifetime stressor exposure inventory (i.e., the Stress and Adversity Inventory for Adults, or STRAIN) and a standard economic approach to quantify risk and ambiguity preferences. Greater lifetime stressor exposure as measured by the STRAIN, particularly in early life, was associated with higher aversion to ambiguity but not risk preferences.

Uncertainty is a factor in most decisions. Here the authors quantify tolerance for two forms of economic uncertainty—risk and ambiguity—and show that greater lifetime stressor exposure (as assessed by a comprehensive lifetime stressor exposure inventory) was associated with higher aversion to decisions involving ambiguity, but not risk.