Abstract
This is a study of the perception of economic risks that the individual faces in the course of everyday life. The purpose of the study was to analyze and explain optimistic bias or risk denial in relation to risk perceptions. It is important to gain a better understanding of economic risk denial since it can be assumed to have an influence on economic decision-making and the preventive actions taken by individuals to avoid risks. If economic risk perceptions are optimistically biased and personal risks are denied, what factors can help explain this bias? Participants rated a number of economic risks, both how they perceived the risk to themselves and to other people. Results showed that the perception of all the risks was optimistically biased in all cases personal risk was, on the average, rated lower than general risk. The respondents believed they were only slightly more in control than other people but that they exerted more of this control, i.e. that they took more precautions to avoid economic risks. Significant correlations were found between optimistic bias and the importance placed on money and age. Changes in the level of level of optimistic bias seemed to be primarily due to variance in personal risk, while general risk ratings were more stable.