• Medientyp: Bericht; E-Book
  • Titel: Sadder but wiser: The Effects of Affective States and Weather on Ambiguity Attitudes
  • Beteiligte: Baillon, Aurélien [Verfasser:in]; Koellinger, Philipp [Verfasser:in]; Treffers, Theresa [Verfasser:in]
  • Erschienen: Amsterdam and Rotterdam: Tinbergen Institute, 2014
  • Sprache: Englisch
  • Schlagwörter: sadness ; joy ; D03 ; Ambiguity attitude ; experiment ; affect ; weather ; fear ; D81
  • Entstehung:
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  • Beschreibung: Many important decisions are made without precise information about the probabilities of the outcomes. In such situations, individual ambiguity attitudes influence decision making. The present study identifies affective states as a transient cause of ambiguity attitudes. We conducted two random-assignment, incentive-compatible laboratory experiments, varying subjects' affective states. We find that sadness induces choices that are closer to ambiguity-neutral attitudes compared with the joy, fear, and control groups, where decision makers deviate more from payoff-maximizing behaviors and are more susceptible to likelihood insensitivity. We also find a similar pattern in a representative population sample where cloudy weather conditions on the day of the survey - a proxy for sad affect - correlate with more ambiguity-neutral attitudes. Our results may help explain re al-world phenomena such as financial markets that react to regular fluctuations in weather conditions.
  • Zugangsstatus: Freier Zugang