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.
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Date of creation: 18 Apr 2013
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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)
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