Journal ArticleDOI
Risk as feelings.
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TLDR
This article proposed the risk-as-feelings hypothesis, which highlights the role of affect experienced at the moment of decision making, and showed that emotional reactions to risky situations often diverge from cognitive assessments of those risks.Abstract:
Virtually all current theories of choice under risk or uncertainty are cognitive and consequentialist. They assume that people assess the desirability and likelihood of possible outcomes of choice alternatives and integrate this information through some type of expectation-based calculus to arrive at a decision. The authors propose an alternative theoretical perspective, the risk-as-feelings hypothesis, that highlights the role of affect experienced at the moment of decision making. Drawing on research from clinical, physiological, and other subfields of psychology, they show that emotional reactions to risky situations often diverge from cognitive assessments of those risks. When such divergence occurs, emotional reactions often drive behavior. The risk-as-feelings hypothesis is shown to explain a wide range of phenomena that have resisted interpretation in cognitive-consequentialist terms.read more
Citations
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Journal ArticleDOI
Risk and Rationality in Adolescent Decision Making: Implications for Theory, Practice, and Public Policy
Valerie F. Reyna,Frank H. Farley +1 more
TL;DR: In the heat of passion, in the presence of peers, on the spur of the moment, in unfamiliar situations, when trading off risks and benefits favors bad long-term outcomes, and when behavioral inhibition is required for good outcomes, adolescents are likely to reason more poorly than adults do.
Journal ArticleDOI
Emotions in Economic Theory and Economic Behavior
TL;DR: This paper showed that both the determinants of visceral factors and their impact on behavior are not only systematic, but also amenable to formal modeling, and that both determinants and their effects on behavior can be found in the literature.
Posted Content
Neuroeconomics: How Neuroscience Can Inform Economics
TL;DR: A review of recent developments in neuroeconomics and their implications for economics can be found in this article, where a two-dimensional dichotomization of neural processes between automatic and controlled processes and cognitive and affective processes is proposed.
Journal ArticleDOI
Risk Perception and Affect
Paul Slovic,Ellen Peters +1 more
TL;DR: In this paper, the authors trace the development of the affect heuristic and discuss some of the important ways that it impacts how people perceive and evaluate risk, which is referred to as risk as feelings.
Journal ArticleDOI
Good Day Sunshine: Stock Returns and the Weather
David Hirshleifer,Tyler Shumway +1 more
TL;DR: This article examined the relationship between morning sunshine in the city of a country's leading stock exchange and daily market index returns across 26 countries from 1982 to 1997 and found that sunny weather is associated with upbeat mood.
References
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Book ChapterDOI
Prospect theory: an analysis of decision under risk
Daniel Kahneman,Amos Tversky +1 more
TL;DR: In this paper, the authors present a critique of expected utility theory as a descriptive model of decision making under risk, and develop an alternative model, called prospect theory, in which value is assigned to gains and losses rather than to final assets and in which probabilities are replaced by decision weights.
Journal ArticleDOI
Prospect theory: analysis of decision under risk
Daniel Kahneman,Amos Tversky +1 more
Book
Understanding Attitudes and Predicting Social Behavior
Icek Ajzen,Martin Fishbein +1 more
TL;DR: In this paper, the author explains "theory and reasoned action" model and then applies the model to various cases in attitude courses, such as self-defense and self-care.
Book
Handbook of social psychology
TL;DR: In this paper, Neuberg and Heine discuss the notion of belonging, acceptance, belonging, and belonging in the social world, and discuss the relationship between friendship, membership, status, power, and subordination.
Book
Descartes' Error: Emotion, Reason, and the Human Brain
TL;DR: The authors argued that rational decisions are not the product of logic alone - they require the support of emotion and feeling, drawing on his experience with neurological patients affected with brain damage, Dr Damasio showed how absence of emotions and feelings can break down rationality.