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Risk Perception Theory

Risk Compensation/Risk Homeostasis Theory is According to Campbell Institute "people tend to take more risks when they feel a greater sense of security. In other words, individuals adjust their level of risk-taking behavior depending on the safety measures that are in place (Wilde, 1994)."

I find this theory very interesting because it can easily be applied to the Netflix series Squid Games, where hundreds of people willingly fight fight for the death for a chance to become a billionaire. Even though it's a fictional show, it perfectly fits the framework of this theory's risk-reward parameters. 

Risk Compensation is a subsidiary of Risk Perception Theory- which simply means the study of one's ability to accept or discern a risk.


https://www.thecampbellinstitute.org/wp-content/uploads/2017/05/Campbell-Institute-Risk-Perception-WP.pdf

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