- A-Z
- Jena Economic Resea...
- Volume 7
- The Role of Emotion...
- Abgebildete Person
- Erschienen
- 24. Oktober 2013
- Nummer des Discussion-Papers
-
2013-46
- Schlagwort(e)
-
Emotions
Risk aversion
Structural models
- Zusammenfsg.
-
In the last decades, there has been a large volume of research showing that emotions do 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 behaviour 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 instigate risk-seeking behaviour. Furthermore, we show that there are some differences across gender and across participants’ experience in lab experiments.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- JEL-Classification for JER
- D81 - Criteria for Decision-Making under Risk and Uncertainty ; C91 - Laboratory, Individual Behavior ; D00 - General