Risk Versus Uncertainty: Unpacking the Paradigms in Economic and Managerial Decision-Making

  • Boyan Markov UNWE
Keywords: risk propensity, decision-making, uncertainty, Specific Risk-Taking Scale, Balloon Analogue Risk Task, Domain-Specific Risk-Taking Scale, Cognitive Load, Behavioral Economics, Management Decision-Making, Ecological Validity


This comparative analysis delves into the nuances of risk propensity
measurement within managerial decision-making, juxtaposing three prominent tools: the
Specific Risk-Taking (SRT) Scale, the Balloon Analogue Risk Task (BART), and the
Domain-Specific Risk-Taking (DOSPERT) scale. The study critically evaluates the
effectiveness of these instruments in distinguishing between risk—where probabilities are
known—and uncertainty—where they are not. BART, with its behavioral focus and dynamic
engagement, is posited as superior for its objective evaluation of risk behaviors and
practical implications in various settings. However, the DOSPERT scale's domain-specific
assessment and the SRT Scale's psychological insights provide valuable, context-dependent
alternatives. The study identifies a need for these tools to be integrated with more
contextually valid measures to bridge the gap between assessed risk propensity and
real-world decision-making. The paper contributes to the discourse on risk measurement
and decision-making under uncertainty, emphasizing the importance of tool selection based
on context and cognitive load.


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How to Cite
Markov, B. (2023). Risk Versus Uncertainty: Unpacking the Paradigms in Economic and Managerial Decision-Making. Vanguard Scientific Instruments in Management, 19, 29-41. Retrieved from https://vsim-journal.info/index.php?journal=vsim&page=article&op=view&path[]=514