Risk aversion and emotions

H.Y. Nguyen, C.N. Noussair

Research output: Contribution to journalSpecial issueScientificpeer-review

51 Citations (Scopus)


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
Issue number3
Early online date21 Aug 2014
Publication statusPublished - 2014


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