Consumer Choice & Behavioral

Worrying Too Much

In the previous season, a massive tornado destroyed Cloud 9. Earlier in the episode, the employees held a memorial for a coworker (Brett) who they believed passed away during the tornado. Dina, normally the most confident worker, is a bit freaked out by a rainstorm outside and suggests that they head to the storm shelter. Her risk tolerance seems to have shifted to becoming rather risk averse following the tornado strike. Preferences for risk can change and be context dependent. In this case, a traumatic event a few months earlier has made a large impact on Dina’s tolerance for risk.