Emotional shocks and consumer spending

This study examines how emotional shocks affect consumer spending by using unexpected National Football League (NFL) game outcomes as a natural experiment. We analyze consumer scanner data from 83,332 households during regular seasons from 2004 to 2019, using Las Vegas pregame point spreads and actual outcomes to identify emotional shocks. We find that unexpected losses by home teams increase household shopping trips and spending, while unexpected wins reduce spending. These emotional impacts are concentrated within three days post-game and amplified for high-stakes games. We find support for a retail-therapy mechanism in which upset losses trigger short-lived increases in hedonic purchases and lead to more frequent shopping trips. These findings provide insights into how emotional shocks from unexpected events can influence consumer spending behavior.