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The Emotional Information Processing System is Risk Averse: Ego-Depletion and Investment Behavior

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Author Info
De Langhe, B.
Sweldens, S.T.
Osselaer, S.M.J. van
Tuk, M.A. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
Abstract

Two experiments show that a shortage of self-regulatory resources results in more risk aversion in mixed-gamble (gain/loss) situations. The findings support a dual process view that distinguishes between a rational and an affective information processing system, in which self-regulatory resources are the necessary fuel for the rational system. Depending on the expected values of risk seeking versus risk averse behavior, ego depletion can have negative (experiment 1) as well as positive (experiment 2) consequences for investment behavior.

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File URL: http://hdl.handle.net/1765/13614
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Publisher Info
Paper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2008-064-MKT Revision_Date: 2009-07-29.

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Date of creation: 20 Oct 2008
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Handle: RePEc:dgr:eureri:1765013614

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Related research
Keywords: emotional information processing system; risk averse; ego depletion; investment behavior;

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This page was last updated on 2009-12-16.


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