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Effects of induced moods on economic choices

Author

Listed:
  • Steven J. Stanton
  • Crystal Reeck
  • Scott A. Huettel
  • Kevin S. LaBar

Abstract

Emotions can shape decision processes by altering valuation signals, risk perception, and strategic orientation. Although multiple theories posit a role for affective processes in mediating the influence of frames on decision making, empirical studies have yet to demonstrate that manipulated affect modulates framing phenomena. The present study asked whether induced affective states alter gambling propensity and the influence of frames on decision making. In a between-subjects design, we induced mood (happy, sad, or neutral) in subjects (N=91) via films that were interleaved with the framing task. Happy mood induction increased gambling and apparently accentuated framing effects compared to sad mood induction, although the effect on framing could have resulted from the fact that the increased tendency to gamble made the framing measure more sensitive. Happy mood induction increased gambling, but not framing magnitude, compared to neutral mood induction. Subjects experiencing a sad mood induction did not exhibit behavioral differences from those experiencing a neutral mood. For those subjects who experienced the happy mood induction, both gambling propensity and framing magnitude were positively correlated with the magnitude of the change in their mood valence. We discuss the broader implications of mood effects on real-world economic decisions. % changes in abstract

Suggested Citation

  • Steven J. Stanton & Crystal Reeck & Scott A. Huettel & Kevin S. LaBar, 2014. "Effects of induced moods on economic choices," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 9(2), pages 167-175, March.
  • Handle: RePEc:jdm:journl:v:9:y:2014:i:2:p:167-175
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    References listed on IDEAS

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    1. David Hirshleifer & Tyler Shumway, 2003. "Good Day Sunshine: Stock Returns and the Weather," Journal of Finance, American Finance Association, vol. 58(3), pages 1009-1032, June.
    2. Arkes, Hal R. & Herren, Lisa Tandy & Isen, Alice M., 1988. "The role of potential loss in the influence of affect on risk-taking behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 42(2), pages 181-193, October.
    3. Mark J. Kamstra & Lisa A. Kramer & Maurice D. Levi, 2003. "Winter Blues: A SAD Stock Market Cycle," American Economic Review, American Economic Association, vol. 93(1), pages 324-343, March.
    4. Jon Elster, 1998. "Emotions and Economic Theory," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 47-74, March.
    5. Kahn, Barbara E & Isen, Alice M, 1993. " The Influence of Positive Affect on Variety Seeking among Safe, Enjoyable Products," Journal of Consumer Research, Oxford University Press, vol. 20(2), pages 257-270, September.
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    Cited by:

    1. repec:eee:jeborg:v:144:y:2017:i:c:p:87-96 is not listed on IDEAS
    2. Drouvelis, Michalis & Grosskopf, Brit, 2016. "The effects of induced emotions on pro-social behaviour," Journal of Public Economics, Elsevier, vol. 134(C), pages 1-8.
    3. repec:eee:soceco:v:68:y:2017:i:c:p:62-78 is not listed on IDEAS

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