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Short-term fluctuations in incidental happiness and economic decision-making: experimental evidence from a sports bar

Author

Listed:
  • Judd B. Kessler

    (The Wharton School, University of Pennsylvania)

  • Andrew McClellan

    (Booth School of Business, University of Chicago)

  • James Nesbit

    (New York University)

  • Andrew Schotter

    (New York University)

Abstract

We develop a new experimental paradigm to study how emotions affect decision-making. We use it to investigate the impact of short-term fluctuations in incidental happiness on economic decisions. Experimental subjects watch an NFL football game in a sports bar. At various commercial breaks, we measure subjects’ happiness and observe their decisions regarding charitable giving, willingness to pay for a consumer good, risk taking, and trust. We find that events in the game impact the incidental happiness of our subjects, and these changes lead to predictable changes in choices. We provide a simple model that rationalizes how subjects’ behavior varies with incidental happiness and provides insight into how mood can be tractably included in economics models. Our experimental paradigm can be leveraged by other researchers interested in exploring the impact of emotions on behavior.

Suggested Citation

  • Judd B. Kessler & Andrew McClellan & James Nesbit & Andrew Schotter, 2022. "Short-term fluctuations in incidental happiness and economic decision-making: experimental evidence from a sports bar," Experimental Economics, Springer;Economic Science Association, vol. 25(1), pages 141-169, February.
    • Handle: RePEc:kap:expeco:v:25:y:2022:i:1:d:10.1007_s10683-021-09708-9
    DOI: 10.1007/s10683-021-09708-9
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Decision making; Emotions; Lab in the field;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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