Passive and Active Risk-Taking

Passive risks are risks brought on, or magnified, by inaction (e.g., not reading the “fine print” before signing an agreement, not saving for a pension). They differ from active risks, which result from actions people take that put them at risk (e.g., smoking, driving above the speed limit). In our lab, we developed the PRT scale to measure these types of risks. We have demonstrated that passive risk-taking is not linked to classic risk correlates such as sensation seeking, but shows ties to inaction-oriented tendencies such as procrastination and avoidance — variables previously not regarded as relevant to risk-taking.

Thus, passive risk-taking may be considered a unique domain of risk-taking. We are currently examining other individual differences, such as self-control, time perspective, and anxiety, that differentiate between passive and active risk-taking tendencies. Additionally, we examine how passive risk tendencies apply to real-world risks, such as Cyber or health risks.

Current Research

Effects of attention manipulations on passive risk estimation and mitigation

Many risks, such as global warming, pandemics, and cybersecurity, can be reduced, but people tend to ignore them and fail to take action. This behavior reflects people’s tendency to take passive risks, namely, risks that are embodied in inaction. We demonstrate that passive risks are perceived as less risky than equivalent active risks. Because many of these risks materialize in the distant future, they draw less attention and elicit less emotional reaction than active risks. Consequently, people underestimate them and tend to mitigate them less. In three experiments, we manipulated attention toward different passive risks using an attentional search procedure. In Experiments 1 and 2, participants searched for a designated target risk in a set of 10 sequentially presented risks. They then estimated each risk's severity and the level of fear it evoked. Target risks were seen as more severe than others. This effect was mediated by reported fear. In Experiment 3, participants in the experimental condition had a cybersecurity risk as the target risk, while in the control condition it was a non-cybersecurity risk. Subsequently, the two conditions differed in cybersecurity behavior, as reflected in an increased rate of strengthening passwords to protect private information. These experiments show that focusing on passive risks may increase fear and the tendency to mitigate them.

Lidor Krava & Ron Carmeli

Economic Risk-Taking in Pyramid Schemes

Why do people actively invest in opportunities with objectively poor prospects, even when they fully understand the underlying risks? This research examines the psychological mechanisms that drive economic risk-taking using pyramid schemes as a controlled experimental model. Unlike real-world schemes, which often rely on deception, misinformation, or complex compensation structures, our paradigm presents participants with complete and transparent information about the pyramid's finite structure, recruitment process, and expected payoffs. This allows us to isolate the cognitive processes that underlie risky investment decisions without the confounding influence of fraud or misunderstanding.

Across a series of incentivized experiments, we investigate how individuals evaluate investment opportunities whose success depends on the decisions of future participants. Our findings show that expectations about others' behavior are a key determinant of investment decisions, often outweighing individual differences in risk preferences. Moreover, making these expectations explicit before participants decide increases sensitivity to objective risk and promotes choices that are more closely aligned with expected value. By combining behavioral experiments with theories of economic decision-making, this research provides new insights into how social expectations shape active risk-taking and why economically harmful investment patterns can persist even under conditions of complete transparency.

Yael Mintz

Climate Change as a Passive Risk

Avoiding action to reduce climate change as Passive Risk-Taking

Climate change presents a global challenge that depends heavily on individual and collective decisions. Yet many people fail to take meaningful action despite recognizing the risks. From a behavioral science perspective, this pattern can be understood as passive risk-taking — risks that emerge through inaction rather than deliberate choice.

Our lab investigates how people perceive the risks of climate change, the psychological mechanisms underlying inaction, and the factors that motivate behavioral engagement. By studying climate behavior through the lens of passive risk, we aim to reveal how cognitive biases, temporal discounting, and avoidance tendencies shape responses to long-term threats, and what may encourage more effective climate action.