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Emotional balance and probability weighting

Author

Listed:
  • Narat Charupat
  • Richard Deaves
  • Travis Derouin
  • Marcelo Klotzle
  • Peter Miu

Abstract

We find suggestive evidence that emotional balance has an impact on probability weighting incremental to demographic controls. Specifically, low negative affectivity (implying high emotional balance) tends to be a characteristic of those whose probability weighting functions exhibit lower curvature and more neutral elevation. In other words, emotional balance seems to push people in the direction of normative expected utility theory. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Narat Charupat & Richard Deaves & Travis Derouin & Marcelo Klotzle & Peter Miu, 2013. "Emotional balance and probability weighting," Theory and Decision, Springer, vol. 75(1), pages 17-41, July.
    • Handle: RePEc:kap:theord:v:75:y:2013:i:1:p:17-41
    DOI: 10.1007/s11238-012-9348-x
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    5. Sarin, Rakesh & Wieland, Alice, 2016. "Risk aversion for decisions under uncertainty: Are there gender differences?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 60(C), pages 1-8.

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