Risk Preferences and the Role of Emotions
| Autor: | Chiara Nardi, Maria Levati, Anna Conte |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
Economics and Econometrics
Actuarial science media_common.quotation_subject Emotions 05 social sciences Risk aversion (psychology) risk attitude emotions structural estimation Anger Decision under risk 050105 experimental psychology Weighting Sadness Structural models 0502 economics and business 0501 psychology and cognitive sciences 050207 economics Rank-dependent expected utility Psychology Social psychology Expected utility hypothesis Decision under risk Emotions Structural models media_common |
| Zdroj: | Economica. 85:305-328 |
| ISSN: | 0013-0427 |
| Popis: | There is a large volume of research showing that emotions have relevant effects on decision-making. We contribute to this literature by experimentally investigating the impact of four specific emotional states - joviality, sadness, fear, and anger - on risk attitudes. In order to do so, we fit two models of behavior under risk: the Expected Utility model (EU) and the Rank Dependent Expected Utility model (RDEU), assuming several functional forms of the weighting function. Our results indicate that all emotional states mitigate risk aversion. Furthermore, we show that there are some differences across gender and participants' experience in laboratory experiments. |
| Databáze: | OpenAIRE |
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