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

Uberti, P
;
2015

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.
Articolo in rivista - Articolo scientifico
Asset selection; Decision-making; Emotion-based learning; Neuroeconomics; Portfolio choices;
English
2015
49
59
73
open
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].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/394650
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