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Considerable research demonstrates a “compromise effect” showing preference for “middle” options. Yet, in the context of bundles, the “middle” option in a choice set can be composed in multiple ways. First, a bundle may include only purely moderate options (e.g., individual stocks...
Persistent link: https://www.econbiz.de/10012999396
This paper experimentally investigates how emotions are associated with option prices and risk perception. Using a … emotions and affect. We find gratitude, admiration, and joy to be positively associated with risk perception, although the …
Persistent link: https://www.econbiz.de/10010427973
within a particular range. We test the hypotheses in a lab experiment with a large number of subjects (N = 308), using a well …
Persistent link: https://www.econbiz.de/10011449223
It has been shown that subjects tend to follow others' behavior even when the external signals are uninformative. In this paper we go one step further, showing that conformism occurs even when the choices of others are not even presented to the subjects, but just indirectly perceived. We use the...
Persistent link: https://www.econbiz.de/10010517141
We investigate whether depleting people's cognitive resources (or "willpower") affects the degree to which they are susceptible to framing effects. Recent research in social psychology and economics has suggested that willpower is a resource that can be temporarily depleted and that a depleted...
Persistent link: https://www.econbiz.de/10009793156
This paper experimentally investigates how monetary incentives and emotions influence behaviour in a two-player power … by destroying his or her own endowment. We focus on how stake size (endowment) and emotions influence responses in China … small stake size. Second, emotions related to anger and joy mediate the impact of the take rate on destruction. Third …
Persistent link: https://www.econbiz.de/10011452814
Emotions have a strong impact on our everyday life, including our mental health, sleep pattern, overall well-being, and … judgment and decision making. Our paper is the first study to show that incidental emotions, i.e., emotions not related to the … have a lower willingness to comply with social norms after being primed with positive incidental emotions compared with …
Persistent link: https://www.econbiz.de/10012026011
investigating the question in a natural context. To address this gap, we conduct a natural field experiment with over 200 customers … observe substantial dynamic inconsistency in our experiment, as well as a demand for commitment among a non-negligible number …
Persistent link: https://www.econbiz.de/10014137593
This paper experimentally tests the Fox-Tversky (1995) source preference hypothesis as axiomatized in Chew and Sagi (2008) where people may have preference between equally distributed risks depending on the underlying sources of uncertainty. We study two forms of source preference. One is based...
Persistent link: https://www.econbiz.de/10013220909
randomized and incentivized experiment calibrated to real-world price distributions and find that (a) probabilistic risk …
Persistent link: https://www.econbiz.de/10014030170