The effects of situationally induced self-esteem and the presence of an audience on risk preference were assessed. Fifty- four subjects manipulated for either high- or low-self-esteem performed alone, in the presence of a familiar audience, or in the presence of an unfamiliar audience. A significant Audience X Level of Esteem interaction was obtained. Low-esteem subjects relative to high-esteem subjects took significantly greater risk when per forming alone than when in front of an audience. The study provides conceptual support for other research concerning the effects of self-esteem on risk taking.
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