Risk Behavior, Risk Perception and Online Shopping: An Experimental Approach

In this paper, we analyze and link self-reported risk perception data obtained from surveys and experimentally elicited risk parameters and use them to explain online shopping behavior. We find that self-reported risk data turn out to be not correlated with the actual risk parameters. Although risk perceptions do not play a significant role in explaining binary online shopping behavior, risk parameters of the subjects elicited via a new hybrid experimental methodology play a very important role. The data also reveals that actually risk-averse subjects tend to report themselves to be just as risk-loving as the ones who exhibit risk-loving behavior