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Arousal and Economic Decision Making

Author

Listed:
  • Salar Jahedi

    (RAND Corporation)

  • Cary Deck

    (University of Arkansas, University of Alaska-Anchorage, Chapman University)

  • Dan Ariely

    (Duke University)

Abstract

Previous experiments have found that subjecting participants to cognitive load leads to poorer decision making, consistent with dual-system models of behavior. Rather than taxing the cognitive system, this paper reports the results of an experiment that takes a complementary approach: arousing the emotional system. The results indicate that exposure to arousing visual stimuli as compared to neutral images has a negligible impact on performance in arithmetic tasks, impatience, risk taking in the domain of losses, and snack choice although we nd that arousal modestly increases in risk-taking in the gains domain and increases susceptibility to anchoring e ects. We nd the ef- fect of arousal on decision making to be smaller and less consistent then the e ect of increased cognitive load for the same tasks.

Suggested Citation

  • Salar Jahedi & Cary Deck & Dan Ariely, 2016. "Arousal and Economic Decision Making," Working Papers 16-02, Chapman University, Economic Science Institute.
    • Handle: RePEc:chu:wpaper:16-02
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    References listed on IDEAS

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    Cited by:

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    2. Kuhn, Michael A. & Kuhn, Peter & Villeval, Marie Claire, 2017. "Decision-environment effects on intertemporal financial choices: How relevant are resource-depletion models?," Journal of Economic Behavior & Organization, Elsevier, vol. 137(C), pages 72-89.
    3. Ennio Bilancini & Leonardo Boncinelli & Lorenzo Spadoni, 2020. "Motivating Risky Choices Increases Risk Taking," Working Papers CESARE 1/2020, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    4. Jean-Francois Gajewski & Marco Heimann & Luc Meunier, 2022. "Nudges in SRI: The Power of the Default Option," Journal of Business Ethics, Springer, vol. 177(3), pages 547-566, May.
    5. Jean-François Gajewski & Marco Heimann & Luc Meunier, 2022. "Nudges in SRI: The Power of the Default Option," Post-Print hal-03156921, HAL.
    6. Bonnier, Evelina & Dreber, Anna & Hederos, Karin & Sandberg, Anna, 2019. "Exposure to half-dressed women and economic behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 168(C), pages 393-418.
    7. Deck, Cary & Jahedi, Salar & Sheremeta, Roman, 2021. "On the consistency of cognitive load," European Economic Review, Elsevier, vol. 134(C).
    8. Bonnier, Evelina & Dreber, Anna & Hederos, Karin & Sandberg, Anna, 2018. "Undressed for Success? The Effects of Half-Naked Women on Economic Behavior," Working Paper Series 6/2018, Stockholm University, Swedish Institute for Social Research.
    9. Luc Meunier & Sophie Richit, 2023. "Testing four nudges in socially responsible investments: Default winner by inertia," Post-Print hal-04325247, HAL.
    10. Buss, David M. & Foley, Pete, 2020. "Mating and marketing," Journal of Business Research, Elsevier, vol. 120(C), pages 492-497.

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    Keywords

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    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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