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Special Section: Experiments on Learning, Methods, and Voting

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  • Yen Nguyen
  • Charles N. Noussair

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.

Suggested Citation

  • Yen Nguyen & Charles N. Noussair, 2014. "Special Section: Experiments on Learning, Methods, and Voting," Pacific Economic Review, Wiley Blackwell, vol. 19(3), pages 296-312, August.
  • Handle: RePEc:bla:pacecr:v:19:y:2014:i:3:p:296-312
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    References listed on IDEAS

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    1. Coget, Jean-Francois & Haag, Christophe & Gibson, Donald E., 2011. "Anger and fear in decision-making: The case of film directors on set," European Management Journal, Elsevier, vol. 29(6), pages 476-490.
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