Financial Advice for Retirement, Social Security, IRAs and Estate Planning

Buildings And Risk Taking

May 14, 2018

Here’s an innovative take on investing. The author says a study he conducted found that where an investor is located in a building influences how much risk he or she takes. Specifically, the higher a person is located in a building, the more risk he or she is likely to take.

A growing number of scholars in business schools — including my own — have been investigating how people’s financial and consumer decisions are affected by factors in the built environment. Labels have emerged to describe these findings, such as “atmospherics,” “sensory marketing,” “servicescapes” and “embodied/grounded cognition.”

For instance, studies have shown that people are more creative in rooms with high ceilings, more likely to vote in favor of educational initiatives when they are physically in a school, seek more variety when shopping in narrow aisles, prefer romantic movies in cold rooms and are more likely to donate to charities in brightly lit settings.

 

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