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The generality of the emotion effect on magnitude sensitivity

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  • Gong, Min
  • Baron, Jonathan

Abstract

Three studies asked whether reported emotional response interfere with magnitude sensitivity, defined as a subjective evaluation difference between a high magnitude outcome and a low one. Previous research has reported that emotion reduces magnitude sensitivity under separate evaluation in a gain domain (Hsee & Rottenstreich, 2004), a negative effect. We test the generality of this emotion effect in gain and loss domains, and under separate or joint evaluation mode, using a variety of stimuli. We found an opposite, positive, effect in Experiment 1 (in willingness to pay to save species or prevent health impairments) and Experiment 3 (in willingness to pay to prevent bad outcomes in news stories) but replicated the original negative effect in Experiment 2 (compensation for losses). Further research is needed to disentangle possible causes of these effects and to explore how these findings may be applied to measurement of values for non-market goods.

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  • Gong, Min & Baron, Jonathan, 2011. "The generality of the emotion effect on magnitude sensitivity," Journal of Economic Psychology, Elsevier, vol. 32(1), pages 17-24, February.
    • Handle: RePEc:eee:joepsy:v:32:y:2011:i:1:p:17-24
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    References listed on IDEAS

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    1. Jack L. Knetsch & J. A. Sinden, 1984. "Willingness to Pay and Compensation Demanded: Experimental Evidence of an Unexpected Disparity in Measures of Value," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(3), pages 507-521.
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    5. Boyle Kevin J. & Desvousges William H. & Johnson F. Reed & Dunford Richard W. & Hudson Sara P., 1994. "An Investigation of Part-Whole Biases in Contingent-Valuation Studies," Journal of Environmental Economics and Management, Elsevier, vol. 27(1), pages 64-83, July.
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    Cited by:

    1. Stephan Dickert & Janet Kleber & Ellen Peters & Paul Slovic, 2011. "Numeracy as a precursor to pro-social behavior: The impact of numeracy and presentation format on the cognitive mechanisms underlying donation decisions," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 6(7), pages 638-650, October.
    2. repec:cup:judgdm:v:6:y:2011:i:7:p:616-628 is not listed on IDEAS
    3. Chen, Xuqi & Gao, Zhifeng, 2016. "The Effects of Emotion on Consumers’ Willingness-to-Pay (WTP) for Eco-labeled Fresh Produce," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235996, Agricultural and Applied Economics Association.
    4. Emre Soyer & Robin M. Hogarth, 2011. "The size and distribution of donations: Effects of number of recipients," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 6(7), pages 616-628, October.
    5. Barneron, Meir & Choshen-Hillel, Shoham & Yaniv, Ilan, 2021. "Reaping a benefit at the expense of multiple others: How are the losses of others counted?," Organizational Behavior and Human Decision Processes, Elsevier, vol. 164(C), pages 136-146.
    6. repec:cup:judgdm:v:6:y:2011:i:7:p:638-650 is not listed on IDEAS

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