The Emotional Information Processing System is Risk Averse: Ego-Depletion and Investment Behavior

Bart de Langhe, Steven Sweldens, Stijn van Osselaer and Mirjam Tuk

ERIM Report Series Research in Management from Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam

Abstract: Two experiments show that a shortage of self-regulatory resources results in more risk aversion in mixed-gamble (gain/loss) situations. The findings support a dual process view that distinguishes between a rational and an affective information processing system, in which self-regulatory resources are the necessary fuel for the rational system. Depending on the expected values of risk seeking versus risk averse behavior, ego depletion can have negative (experiment 1) as well as positive (experiment 2) consequences for investment behavior.

Keywords: ego depletion; emotional information processing system; investment behavior; risk averse (search for similar items in EconPapers)
JEL-codes: C44 G11 G14 M M31 (search for similar items in EconPapers)
Date: 2008-10-20
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Citations: View citations in EconPapers (5)

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