Effects of stress on economic decision-making: Evidence from laboratory experiments
Liam Delaney (),
Günther Fink and
No 2014-02, Stirling Economics Discussion Papers from University of Stirling, Division of Economics
The ways in which preferences respond to the varying stress of economic environments is a key question for behavioral economics and public policy. We conducted a laboratory experiment to investigate the effects of stress on financial decision making among individuals aged 50 and older. Using the cold pressor task as a physiological stressor, and a series of intelligence tests as cognitive stressors, we find that stress increases subjective discounting rates, has no effect on the degree of risk-aversion, and substantially lowers the effort individuals make to learn about financial decisions .
Keywords: stress; financial decisions; discounting; risk aversion; learning (search for similar items in EconPapers)
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Working Paper: Effects of stress on economic decision-making: Evidence from laboratory experiments (2014)
Working Paper: Effects of Stress on Economic Decision-Making: Evidence from Laboratory Experiments (2014)
Working Paper: Effects Of Stress On Economic Decision-Making: Evidence From Laboratory Experiments (2014)
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