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How Power Influences Decision-Makers’ Investment Behavior in the Domains of Loss and Gain

Author

Listed:
  • Katarzyna Sekścińska

    (Faculty of Psychology, University of Warsaw, 00-183 Warsaw, Poland)

  • Joanna Rudzinska-Wojciechowska

    (Center for Economic Psychology and Decision Sciences, Kozminski University, 03-301 Warsaw, Poland)

Abstract

We present a study ( N = 645) investigating how power alters people’s propensity to take investment risks in a changing decision context of gains and losses and the intensity of their reactions to this experience. The results indicate that people in a state of power made more risky investment decisions than the control group regardless of prior gain or loss outcome, whereas people lacking power took less investment risk than the control group, regardless of previous outcomes. Moreover, people with power and those lacking power differed in their reactions to gains and losses, with the former reacting more to gains and the latter to losses.

Suggested Citation

  • Katarzyna Sekścińska & Joanna Rudzinska-Wojciechowska, 2021. "How Power Influences Decision-Makers’ Investment Behavior in the Domains of Loss and Gain," IJERPH, MDPI, vol. 18(23), pages 1-13, December.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:23:p:12834-:d:695733
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    References listed on IDEAS

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