Global Risk, Investment and Emotions
Bibliographic Data
| ID | 9723254 |
|---|---|
| Authors | Ronald Bosman (De Nederlandsche Bank), Frans Van Winden (0000-0003-3713-2026, University of Amsterdam) |
| Year | 2010 |
| Volume | 77 |
| Issue | 307 |
| Pages | 451-471 |
| Publication date | 2010-07-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/j.1468-0335.2008.00752.x |
| OpenAlex | W2095135772 |
| Language | EN |
| Citations received | 1 |
| References cited | 48 |
We investigate a novel dynamic choice problem in an experiment where emotions are measured through self‐reports. The choice problem concerns the investment of an amount of money in a safe option and a risky option when there is a ‘global risk’ of losing all earnings, from both options, including any return from the risky option. Our key finding is that global risk can reduce the amount invested in the risky option. This result cannot be explained by Expected Utility or by its main contenders, Rank‐Dependent Utility and Cumulative Prospect Theory. An explanation is offered by taking account of emotions, using the emotion data from the experiment and recent psychological findings
Actuarial science · Computer security · Cumulative prospect theory · Earnings · Economics · Expected utility hypothesis · Financial economics · Investment (military) · Key (lock) · Microeconomics · Prospect theory · Computer Science · Decision-Making and Behavioral Economics · Economic theories and models · Experimental Behavioral Economics Studies · Finance
Experimental Economics
Affective Neuroscience
Emotion And Adaptation
The Cognitive Structure of Emotions
The somatic marker hypothesis
Disappointment and Dynamic Consistency in Choice under Uncertainty
Cognitive neuroscience of human social behaviour
Emotions in Economic Theory and Economic Behavior
Disappointment in Decision Making Under Uncertainty
The priority heuristic
Psychological Expected Utility Theory and Anticipatory Feelings
Linking Measured Risk Aversion to Individual Characteristics
On bad decisions and disconfirmed expectancies
Out of Control
Developments in Non-Expected Utility Theory
All Negative Moods Are Not Equal
On emotion specificity in decision making
Ownership Risk, Investment, and the Use of Natural Resources
Risk Aversion and Expected-utility Theory
Advances in prospect theory
Risk Aversion and Incentive Effects
Prospect Theory
Toward a positive theory of consumer choice
Effects of Fear and Anger on Perceived Risks of Terrorism
Income distribution, political instability, and investment
Dynamic Choice and the Common Ratio Effect
Emotional Hazard in a Power‐to‐Take Experiment
Regret Theory
Patterns of cognitive appraisal in emotion
Fear, anger, and risk
Why do bad moods increase self-defeating behavior? Emotion, risk tasking, and self-regulation
Gender differences in risk taking
Risk as feelings
Belief and feeling
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,09 |
| Citation span | 2015 - 2015 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |