How Power Influences Decision-Makers’ Investment Behavior in the Domains of Loss and Gain

Katarzyna Sekścińska and Joanna Rudzinska-Wojciechowska
Additional contact information
Katarzyna Sekścińska: Faculty of Psychology, University of Warsaw, 00-183 Warsaw, Poland
Joanna Rudzinska-Wojciechowska: Center for Economic Psychology and Decision Sciences, Kozminski University, 03-301 Warsaw, Poland

IJERPH, 2021, vol. 18, issue 23, 1-13

Abstract: We present a study ( N = 645) investigating how power alters people’s propensity to take investment risks in a changing decision context of gains and losses and the intensity of their reactions to this experience. The results indicate that people in a state of power made more risky investment decisions than the control group regardless of prior gain or loss outcome, whereas people lacking power took less investment risk than the control group, regardless of previous outcomes. Moreover, people with power and those lacking power differed in their reactions to gains and losses, with the former reacting more to gains and the latter to losses.

Keywords: power; investment decisions; gain; loss (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1660-4601/18/23/12834/pdf (application/pdf)
https://www.mdpi.com/1660-4601/18/23/12834/ (text/html)

Related works:
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:gam:jijerp:v:18:y:2021:i:23:p:12834-:d:695733

Access Statistics for this article

IJERPH is currently edited by Ms. Jenna Liu

More articles in IJERPH from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().