Risk aversion and emotions

H.Y. Nguyen, C.N. Noussair

Research output: Contribution to journalSpecial issueScientificpeer-review

Abstract

We consider the relationship between emotions and decision-making under risk. Specifically, we examine the emotional correlates of risk-averse decisions. In our experiment, individuals’ facial expressions are monitored with face reading software, as they are presented with risky lotteries. We then correlate these facial expressions with subsequent decisions in risky choice tasks. We find that a more positive emotional state is positively correlated with greater risk taking. The
strength of a number of emotions, including fear, happiness, anger and surprise, is positively correlated with risk aversion.
Original languageEnglish
Pages (from-to)296-312
JournalPacific Economic Review
Volume19
Issue number3
Early online date21 Aug 2014
DOIs
Publication statusPublished - 2014

Fingerprint

Emotion
Risk aversion
Correlates
Lottery
Decision making under risk
Happiness
Experiment
Risky choice
Software
Surprise
Risk taking
Anger
Risk-averse

Cite this

Nguyen, H.Y. ; Noussair, C.N. / Risk aversion and emotions. In: Pacific Economic Review. 2014 ; Vol. 19, No. 3. pp. 296-312.
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Risk aversion and emotions. / Nguyen, H.Y.; Noussair, C.N.

In: Pacific Economic Review, Vol. 19, No. 3, 2014, p. 296-312.

Research output: Contribution to journalSpecial issueScientificpeer-review

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