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Prudence, Personality, Cognitive Ability and Emotional State

Author

Listed:
  • Breaban, Adriana

    (Tilburg University, Center For Economic Research)

  • van de Kuilen, Gijs

    (Tilburg University, Center For Economic Research)

  • Noussair, Charles

    (Tilburg University, Center For Economic Research)

Abstract

We report an experiment to consider the emotional correlates of prudent decision making. In the experiment, we present subjects with lotteries and measure their emotional response with facial recognition software. They then make binary choices between risky lotteries that distinguish prudent from imprudent individuals. They also perform tasks to measure their cognitive ability and a number of personality characteristics. We find that a more negative emotional state correlates with greater prudence. Higher cognitive ability and less conscientiousness is also associated with greater prudence.

Suggested Citation

  • Breaban, Adriana & van de Kuilen, Gijs & Noussair, Charles, 2016. "Prudence, Personality, Cognitive Ability and Emotional State," Discussion Paper 2016-030, Tilburg University, Center for Economic Research.
  • Handle: RePEc:tiu:tiucen:9a01a5ab-e03d-49eb-9cd7-4d7f878d8737
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    References listed on IDEAS

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    7. Breaban, A. & Noussair, C.N., 2013. "Emotional state and Market Behavior," Discussion Paper 2013-031, Tilburg University, Center for Economic Research.
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    More about this item

    Keywords

    emotions; prudence; personality; cognitive ability;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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