The role of psychological and physiological factors in decision making under risk and in a dilemma
AbstractWe study the di fference in the result of two diff erent risk elicitation methods by linking estimates of risk attitudes to gender, age, personality traits, a decision in a dilemma situation, and physiological states measured by heart rate variability (HRV). Our results indicate that di fferences between the methods are reflected in a diff erent effect of gender and personality traits. Furthermore, HRV is linked to risk-taking in the experiment for one of the methods, suggesting that emotionally more stressed individuals display more risk aversion. However, we cannot determine if these are signifi cantly related to the diff erence on the results of the two methods. Finally, we find that risk attitudes are not predictive of the ability to decide in a dilemma, but personality traits are. There is also no apparent relationship between the physiological state during the dilemma situation and the ability to make a decision.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by QUT Business School in its series QuBE Working Papers with number 010.
Date of creation: 18 Apr 2013
Date of revision:
Contact details of provider:
Web page: http://www.qut.edu.au/research/research-projects/queensland-behavioural-economics-group-qube
s risk preferences;
Find related papers by JEL classification:
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- D87 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Neuroeconomics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-27 (All new papers)
- NEP-CBE-2013-04-27 (Cognitive & Behavioural Economics)
- NEP-DEM-2013-04-27 (Demographic Economics)
- NEP-EVO-2013-04-27 (Evolutionary Economics)
- NEP-EXP-2013-04-27 (Experimental Economics)
- NEP-NEU-2013-04-27 (Neuroeconomics)
- NEP-UPT-2013-04-27 (Utility Models & Prospect Theory)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Isaac, R Mark & James, Duncan, 2000. " Just Who Are You Calling Risk Averse?," Journal of Risk and Uncertainty, Springer, vol. 20(2), pages 177-87, March.
- Zeckhauser, Richard Jay & Rand, David Gertler & Wernerfelt, Nils Christian & Garcia, Justin & Lum, Koji & Dreber-Almenberg, Anna, 2010.
"Dopamine and Risk Choices in Different Domains: Findings Among Series Tournament Bridge Players,"
4405460, Harvard Kennedy School of Government.
- Anna Dreber & David Rand & Nils Wernerfelt & Justin Garcia & Miguel Vilar & J. Lum & Richard Zeckhauser, 2011. "Dopamine and risk choices in different domains: Findings among serious tournament bridge players," Journal of Risk and Uncertainty, Springer, vol. 43(1), pages 19-38, August.
- Dreber, Anna & Rand, David G. & Wernerfelt, Nils & Garcia, Justin R. & Lum, J. Koji & Zeckhauser, Richard, 2010. "Dopamine and Risk Choices in Different Domains: Findings among Serious Tournament Bridge Players," Working Paper Series rwp10-034, Harvard University, John F. Kennedy School of Government.
- Dohmen Thomas & Falk Armin & Huffman David & Sunde Uwe & Schupp Jürgen & Wagner Gert G., 2009.
"Individual Risk Attitudes: Measurement, Determinants and Behavioral Consequences,"
039, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Jürgen Schupp & Gert G. Wagner, 2011. "Individual Risk Attitudes: Measurement, Determinants, And Behavioral Consequences," Journal of the European Economic Association, European Economic Association, vol. 9(3), pages 522-550, 06.
- Dohmen Thomas & Falk Armin & Huffman David & Sunde Uwe & Schupp Jürgen & Wagner Gert, 2009. "Individual Risk Attitudes: Measurement, Determinants and Behavioral Consequences," ROA Research Memorandum 007, Maastricht University, Research Centre for Education and the Labour Market (ROA).
- Jeffrey Carpenter & Justin Garcia & J. Lum, 2011. "Dopamine receptor genes predict risk preferences, time preferences, and related economic choices," Journal of Risk and Uncertainty, Springer, vol. 42(3), pages 233-261, June.
- Falk, Armin & Menrath, Ingo & Siegrist, Johannes & Verde, Pablo Emilio, 2011.
"Cardiovascular Consequences of Unfair Pay,"
CEPR Discussion Papers
8463, C.E.P.R. Discussion Papers.
- Falk, Armin & Menrath, Ingo & Verde, Pablo Emilio & Siegrist, Johannes, 2011. "Cardiovascular Consequences of Unfair Pay," IZA Discussion Papers 5720, Institute for the Study of Labor (IZA).
- Armin Falk & Ingo Menrath & Pablo Emilio Verde & Johannes Siegrist, 2011. "Cardiovascular Consequences of Unfair Pay," SOEPpapers on Multidisciplinary Panel Data Research 380, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Uwe Dulleck & Jonas Fooken & Cameron Newton & Andrea Ristl & Markus Schaffner & Benno Torgler, 2012.
"Tax Compliance and Psychic Costs: Behavioral Experimental Evidence Using a Physiological Marker,"
CREMA Working Paper Series
2012-19, Center for Research in Economics, Management and the Arts (CREMA).
- Uwe Dulleck & Jonas Fooken & Cameron Newton & Andrea Ristl & Markus Schaffner & Benno Torgler, 2012. "Tax Compliance and Psychic Costs: Behavioral Experimental Evidence Using a Physiological Marker," QuBE Working Papers 001, QUT Business School.
- John Hey & Andrea Morone & Ulrich Schmidt, 2009.
"Noise and bias in eliciting preferences,"
Journal of Risk and Uncertainty,
Springer, vol. 39(3), pages 213-235, December.
- John D Hey & Andrea Morone & Ulrich Schmidt, 2007. "Noise and Bias in Eliciting Preferences," Discussion Papers 07/04, Department of Economics, University of York.
- John D. Hey & Andrea Morone & Ulrich Schmidt, 2007. "Noise and Bias in Eliciting Preferences," Kiel Working Papers 1386, Kiel Institute for the World Economy.
- Brandts, Jordi & Garofalo, Orsola, 2012.
"Gender pairings and accountability effects,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 83(1), pages 31-41.
- Jordi Brandts & Orsola Garofalo, 2010. "Gender Pairings and Accountability Effect," Labsi Experimental Economics Laboratory University of Siena 034, University of Siena.
- Eckel, Catherine C. & Grossman, Philip J., 2008. "Differences in the Economic Decisions of Men and Women: Experimental Evidence," Handbook of Experimental Economics Results, Elsevier.
- Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
- Chetan Dave & Catherine Eckel & Cathleen Johnson & Christian Rojas, 2010. "Eliciting risk preferences: When is simple better?," Journal of Risk and Uncertainty, Springer, vol. 41(3), pages 219-243, December.
- Baba Shiv & Antoine Bechara & Irwin Levin & Joseph Alba & James Bettman & Laurette Dube & Alice Isen & Barbara Mellers & Ale Smidts & Susan Grant & A. Mcgraw, 2005. "Decision Neuroscience," Marketing Letters, Springer, vol. 16(3), pages 375-386, December.
- Glenn W. Harrison & Eric Johnson & Melayne M. McInnes & E. Elisabet Rutström, 2005. "Temporal stability of estimates of risk aversion," Applied Financial Economics Letters, Taylor and Francis Journals, vol. 1(1), pages 31-35, January.
- Michael Daly & Liam Delaney & Colm P. Harmon, 2009. "Psychological and Biological Foundations of Time Preference," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 659-669, 04-05.
- Camelia Kuhnen & Brian Knutson, 2005. "The Neural Basis of Financial Risk Taking," Experimental 0509001, EconWPA.
- Hartog, Joop & Ferrer-i-Carbonell, Ada & Jonker, Nicole, 2002. "Linking Measured Risk Aversion to Individual Characteristics," Kyklos, Wiley Blackwell, vol. 55(1), pages 3-26.
- Uwe Dulleck & Jacob Fell & Jonas Fooken, 2011. "Within-subject Intra- and Inter-method consistency of two experimental risk attitude elicitation," NCER Working Paper Series 74, National Centre for Econometric Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dipa Sarkar).
If references are entirely missing, you can add them using this form.