EconPapers    
Economics at your fingertips  
 

Risk and rationality: The effects of mood and decision rules on probability weighting

Helga Fehr-Duda, Thomas Epper, Adrian Bruhin () and Renate Schubert

Journal of Economic Behavior & Organization, 2011, vol. 78, issue 1-2, 14-24

Abstract: Abstract Empirical research has shown that people tend to overweight small probabilities and underweight large probabilities when valuing risky prospects, but little is known about factors influencing the shape of the probability weighting curve. Based on a laboratory experiment with monetary incentives, we demonstrate that pre-existing good mood is significantly associated with women's probability weights: Women in a better than normal mood tend to weight probabilities relatively more optimistically. Many men, however, seem to be immunized against effects of incidental mood by applying a mechanical decision criterion such as maximization of expected value.

Keywords: Probability; weighting; function; Risk; taking; behavior; Incidental; emotions; Rationality; Gender; differences (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167-2681(11)00003-5
Full text for ScienceDirect subscribers only

Related works:
Journal Article: Risk and rationality: The effects of mood and decision rules on probability weighting (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:78:y:2011:i:1-2:p:14-24

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2022-01-15
Handle: RePEc:eee:jeborg:v:78:y:2011:i:1-2:p:14-24