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Do emotions matter? Coherent preferences under anchoring and emotional effects

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  • Araña, Jorge E.
  • León, Carmelo J.

Abstract

Emotions can affect individuals' preferences and economic behavior. In this paper we consider the relationship between emotions and anchoring effects in non-market valuation. The findings show that although anchoring effects are relevant, elicited preferences are coherent, in the sense that they are sensitive to changes in the dimension of the good. Additionally, it is found that the relationship between emotional intensity and the level of anchoring is U-shaped, with anchoring declining as emotional intensity rises until a minimum is reached. Thus, preferences can be substantially less affected by anchoring effects if emotional intensity deviates from extreme values. Finally, it is found that the degree of sensitivity to scope is influenced by the level of emotional load involve in the valuation task.

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  • Araña, Jorge E. & León, Carmelo J., 2008. "Do emotions matter? Coherent preferences under anchoring and emotional effects," Ecological Economics, Elsevier, vol. 66(4), pages 700-711, July.
    • Handle: RePEc:eee:ecolec:v:66:y:2008:i:4:p:700-711
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    Cited by:

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    2. Menzel, Susanne & Wiek, Arnim, 2009. "Valuation in morally charged situations: The role of deontological stances and intuition for trade-off making," Ecological Economics, Elsevier, vol. 68(8-9), pages 2198-2206, June.
    3. Araña, Jorge E. & León, Carmelo J., 2009. "Understanding the use of non-compensatory decision rules in discrete choice experiments: The role of emotions," Ecological Economics, Elsevier, vol. 68(8-9), pages 2316-2326, June.
    4. Menzel, Susanne, 2013. "Are emotions to blame? — The impact of non-analytical information processing on decision-making and implications for fostering sustainability," Ecological Economics, Elsevier, vol. 96(C), pages 71-78.
    5. Levine, Jordan & Chan, Kai M.A. & Satterfield, Terre, 2015. "From rational actor to efficient complexity manager: Exorcising the ghost of Homo economicus with a unified synthesis of cognition research," Ecological Economics, Elsevier, vol. 114(C), pages 22-32.
    6. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    7. León, Carmelo J. & de León, Javier & Araña, Jorge E. & González, Matías M., 2015. "Tourists' preferences for congestion, residents' welfare and the ecosystems in a national park," Ecological Economics, Elsevier, vol. 118(C), pages 21-29.

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    More about this item

    Keywords

    Emotions Anchoring Non-market valuation Decision making D0 Q51 Q26;

    JEL classification:

    • D0 - Microeconomics - - General
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources

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