Risk Under Pressure Study
Validates · Links 1→3 · Pressure → Bias → Decision Distortion
Tests whether different pressure conditions change risk-taking, confidence, and decision quality relative to a baseline.
What is being tested?
Whether time pressure, social evaluation, and loss framing each shift risk-taking, confidence calibration, and herding away from a control baseline.
What did we find?
Preliminary (demo) results suggest loss framing is the largest mover — pulling risk down and widening the confidence gap — while social evaluation most increases herding. To be confirmed with collected data.
Why does it matter?
It is the core validation step: if pressure distorts individual choices in a structured way, the framework's first three links hold and the market-level question becomes worth asking.
Output package
Demo dataExecutive summary — readable insights
- Loss framing produced the most risk-avoidant behavior (mean risk 39 vs. 52 control) — the single largest condition effect.
- Confidence decoupled from accuracy most under loss framing and time pressure (gaps of +15 and +12 points).
- Social evaluation drove the strongest herding response (+21 vs. +8 control), consistent with H3.
- Net read: pressure does not just raise or lower risk uniformly — each condition distorts a different part of the decision.
Summary statistics
| Condition | n | Risk (SD) | Conf. gap | Herding |
|---|---|---|---|---|
| Control | 64 | 52 (18) | +4 | +8 |
| Time Pressure | 60 | 61 (22) | +12 | +14 |
| Social Evaluation | 62 | 47 (19) | +9 | +21 |
| Loss Framing | 62 | 39 (17) | +15 | +17 |
Regression summary
| Term | β | SE |
|---|---|---|
| Time Pressure | +9.1* | 3.6 |
| Social Evaluation | −4.8 | 3.5 |
| Loss Framing | −13.2*** | 3.4 |
| Numeracy (z) | +2.1 | 1.5 |
| Constant (control mean) | 52.0*** | 2.4 |
risk_score ~ time_pressure + social_eval + loss_framing (OLS, control = reference, numeracy covariate)
* p<.05 ** p<.01 *** p<.001 · Coefficients are change in risk score (0–100) vs. the control group. Demo estimates.
Dataset preview
| id | condition | risk | confidence | accuracy | herding |
|---|---|---|---|---|---|
| p001 | Control | 55 | 66 | 63 | 6 |
| p002 | Time Pressure | 64 | 78 | 61 | 12 |
| p003 | Social Evaluation | 44 | 72 | 60 | 24 |
| p004 | Loss Framing | 37 | 74 | 57 | 18 |
| p005 | Loss Framing | 41 | 70 | 59 | 15 |
Conditions
- Control
- Time Pressure
- Social Evaluation
- Loss Framing
Measures
- Risk tolerance
- Choice consistency
- Confidence calibration
- Herding tendency
- Loss sensitivity
- Reaction time (where available)
Hypotheses
- H1 — Time pressure increases variance in risk-taking and reduces choice consistency relative to control.
- H2 — Loss framing shifts choices toward risk-avoidance and raises loss sensitivity.
- H3 — Social evaluation increases herding tendency and widens the confidence–accuracy gap.
Variables
| Variable | Type | Description |
|---|---|---|
| Pressure condition | Independent | Randomly assigned: control, time pressure, social evaluation, or loss framing. |
| Risk score | Dependent | Composite of allocation choices across paired gamble tasks (0–100). |
| Confidence gap | Dependent | Stated confidence minus realized accuracy on judgment items. |
| Herding tendency | Dependent | Shift toward displayed group consensus after it is revealed. |
| Numeracy | Control | Short numeracy check used as a covariate, not a screen. |
Sample decision tasks
Task 01
Choose between a guaranteed $40 and a 50% chance of $100 (otherwise $0).
Repeated across gain and loss frames to estimate reference dependence.
Task 02
Rate your confidence (0–100%) that your previous answer was the better choice.
Paired with realized outcomes to compute calibration.
Task 03
A group of prior participants mostly chose Option B. Do you want to revise your choice?
Isolates willingness to follow revealed consensus.
Participant recruitment
- Financial Analytics Club
- Athletic teams
- School mailing lists
- Social media
Sample size & power
Target N ≈ 240–280 (≈60–70 per condition). Pilot N = 48 complete. Powered to detect medium between-condition differences (d ≈ 0.5) at α = .05.
Assumptions
- Simulated pressure (timers, observation, framing) meaningfully proxies real-world stress.
- Composite risk score captures the construct better than any single task.
- Random assignment balances unobserved traits across conditions.
Methodology note
Ethics note
Theory anchor