Chasing emotional losses: Negative subjective affect is linked to increased risk-seeking behavior both within and between individuals

The literature on emotion and risk-taking is large and heterogeneous. Whereas some studies have found that positive emotions increase risk-taking and negative emotions increase risk aversion, others have found just the opposite. In this study, we investigated this question in the context of a risky decision-making task with embedded high-resolution sampling of participants’ subjective emotional valence. Across two large-scale experiments (N = 329 and 524), we consistently found evidence for a negative association between self-reported emotional valence and risk-taking behaviors. That is, more negative subjective affect was associated with increased risk-seeking, and more positive subjective affect was associated with increased risk aversion. This effect was evident both when we compared participants with different levels of mean emotional valence as well as when we considered within-participant emotional fluctuations over the course of the task. Prospect-theoretic computational modeling analyses suggested that both between- and within-participant effects were driven by an effect of emotional valence on the curvature of the subjective utility function (i.e., increased risk tolerance in more negative emotional states), as well as by an effect of within-person emotion fluctuations on loss aversion. We interpret findings in terms of a tendency for participants in negative emotional states to choose high-risk, high-reward options in an attempt to improve their emotional state.