Risk Preferences and the Role of Emotions
Conte, A., Levati, M.V. and Nardi, C. 2018. Risk Preferences and the Role of Emotions. Economica. 85 (338), pp. 305-328. https://doi.org/10.1111/ecca.12209
| Title | Risk Preferences and the Role of Emotions |
|---|---|
| Type | Journal article |
| Authors | Conte, A., Levati, M.V. and Nardi, C. |
| Abstract | 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. |
| Keywords | Decision under risk, Emotions, Structural models |
| Journal | Economica |
| Journal citation | 85 (338), pp. 305-328 |
| ISSN | 1468-0335 |
| Year | 2018 |
| Publisher | Wiley |
| Accepted author manuscript | |
| Digital Object Identifier (DOI) | https://doi.org/10.1111/ecca.12209 |
| Publication dates | |
| Published | 19 Sep 2016 |
| Published online | 19 Sep 2016 |
| Published in print | Apr 2018 |