IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

The effects of emotions on preferences and choices for public goods

Listed author(s):
  • Christopher Boyce

    ()

    (Management School,University of Stirling, Scotland, UK)

  • Mikolaj Czajkowski

    ()

    (University of Warsaw, Department of Economic Sciences, Poland)

  • Nick Hanley

    ()

    (Department of Geography and Sustainable Development, University of St. Andrews)

  • Charles Noussair

    ()

    (Department of Economics, Tilburg University, the Netherlands)

  • Michael Townsend

    (National Institute for Water and Atmosphere Ltd, Hamilton, New Zealand)

  • Steve Tucker

    ()

    (School of Management, University of Waikato, New Zealand)

This paper tests whether changes in “incidental emotions” lead to changes in economic choices. Incidental emotions are experienced at the time of an economic decision but are not part of the payoff from a particular choice. As such, the standard economic model predicts that incidental emotions should not affect behavior, yet many papers in the behavioral science and psychology literatures find evidence of such effects. In this paper, we used a standard procedure to induce different incidental emotional states in respondents, and then carried out a choice experiment on changes to an environmental good (beach quality). We estimated preferences for this environmental good and willingness to pay for changes in this good, and tested whether these were dependent on the particular emotional state induced. We also tested whether choices became more or less random when emotional states were induced, based on the notion of randomness in a standard random utility model. Contrary to our a-priori hypothesis we found no significant evidence of treatment effects, implying that economists need not worry about the effects of variations in incidental emotions on preferences and the randomness of choice, even when there is measured (induced) variation in these emotions.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.st-andrews.ac.uk/media/dept-of-geography-and-sustainable-development/pdf-s/DO2015%2008%20Boyce%20et%20al.pdf
Download Restriction: no

Paper provided by University of St. Andrews, School of Geography and Sustainable Development in its series Discussion Papers in Environment and Development Economics with number 2015-08.

as
in new window

Length: 30 pages
Date of creation: Mar 2015
Handle: RePEc:sss:wpaper:2015-08
Contact details of provider: Web page: http://www.st-andrews.ac.uk/gsd/research/envecon/

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as
in new window


  1. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1986. "Fairness and the Assumptions of Economics," The Journal of Business, University of Chicago Press, vol. 59(4), pages 285-300, October.
  2. Hynes, Stephen & Tinch, Dugald & Hanley, Nick, 2013. "Valuing improvements to coastal waters using choice experiments: An application to revisions of the EU Bathing Waters Directive," Marine Policy, Elsevier, vol. 40(C), pages 137-144.
  3. 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, 06.
  4. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, Oxford University Press, vol. 106(4), pages 1039-1061.
  5. Kogut, Tehila & Ritov, Ilana, 2005. "The singularity effect of identified victims in separate and joint evaluations," Organizational Behavior and Human Decision Processes, Elsevier, vol. 97(2), pages 106-116, July.
  6. 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.
  7. Matthew Rabin, 1998. "Psychology and Economics," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 11-46, March.
  8. Christie, Michael & Hanley, Nick & Hynes, Stephen, 2007. "Valuing enhancements to forest recreation using choice experiment and contingent behaviour methods," Journal of Forest Economics, Elsevier, vol. 13(2-3), pages 75-102, August.
  9. Alex Edmans & Diego García & Øyvind Norli, 2007. "Sports Sentiment and Stock Returns," Journal of Finance, American Finance Association, vol. 62(4), pages 1967-1998, August.
  10. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
  11. Ben-Akiva, Moshe & McFadden, Daniel & Train, Kenneth & Börsch-Supan, Axel, 2002. "Hybrid Choice Models: Progress and Challenges," Sonderforschungsbereich 504 Publications 02-29, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
  12. Andrade, Eduardo B. & Ariely, Dan, 2009. "The enduring impact of transient emotions on decision making," Organizational Behavior and Human Decision Processes, Elsevier, vol. 109(1), pages 1-8, May.
  13. George Loewenstein, 2000. "Emotions in Economic Theory and Economic Behavior," American Economic Review, American Economic Association, vol. 90(2), pages 426-432, May.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:sss:wpaper:2015-08. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eoin McLaughlin)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.