ABSTRACT: The paper offers a comprehensive analysis of causes and consequences of the accumulation of emotional experience, measured via skin conductance response, when taking risky choices. A large experimental data set was obtained from a psycho-physiological task conducted with 645 bank customers and financial professionals. With respect to causes, we found that the individual emotional response to gains/losses is trend-dependent and influenced by habituation, as well as by anchoring/framing due to the external layout of risky alternatives. With respect to consequences, we found evidence that the somatic reinforcement experience is able to guide asset picking, but within a long-term strategy. Consequently, selection behaviors were observed in a portfolio mean-variance framework, revealing that somatic markers lead individuals to pursue a long-term 'psycho-economic' efficiency that integrates factual information (monetary outcomes) with the implicit subjective experience
Lucarelli, C., Uberti, P., Brighetti, G., Maggi, M. (2015). Risky choices and emotion-based learning. JOURNAL OF ECONOMIC PSYCHOLOGY, 49, 59-73 [10.1016/j.joep.2015.04.004].
Risky choices and emotion-based learning
LUCARELLI, CATERINA;BRIGHETTI, GIANNI;
2015
Abstract
ABSTRACT: The paper offers a comprehensive analysis of causes and consequences of the accumulation of emotional experience, measured via skin conductance response, when taking risky choices. A large experimental data set was obtained from a psycho-physiological task conducted with 645 bank customers and financial professionals. With respect to causes, we found that the individual emotional response to gains/losses is trend-dependent and influenced by habituation, as well as by anchoring/framing due to the external layout of risky alternatives. With respect to consequences, we found evidence that the somatic reinforcement experience is able to guide asset picking, but within a long-term strategy. Consequently, selection behaviors were observed in a portfolio mean-variance framework, revealing that somatic markers lead individuals to pursue a long-term 'psycho-economic' efficiency that integrates factual information (monetary outcomes) with the implicit subjective experienceI documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
