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The role of psychological and physiological factors in decision making under risk and in a dilemma

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  • Jonas Fooken
  • Markus Schaffner

Abstract

We 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.

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Bibliographic Info

Paper provided by QUT Business School in its series QuBE Working Papers with number 010.

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Date of creation: 18 Apr 2013
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Handle: RePEc:qut:qubewp:wp010

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Web page: http://www.qut.edu.au/research/research-projects/queensland-behavioural-economics-group-qube

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Keywords: s risk preferences;

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