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Implicit Negativity Bias Leads to Greater Loss Aversion and Learning during Decision-Making

Author

Listed:
  • Francisco Molins

    (Department of Psychobiology, Universitat de València, Av. Blasco Ibáñez, 13, 46010 Valencia, Spain)

  • Celia Martínez-Tomás

    (Department of Psychobiology, Universitat de València, Av. Blasco Ibáñez, 13, 46010 Valencia, Spain)

  • Miguel Ángel Serrano

    (Department of Psychobiology, Universitat de València, Av. Blasco Ibáñez, 13, 46010 Valencia, Spain)

Abstract

It is widely accepted there is the existence of negativity bias, a greater sensitivity to negative emotional stimuli compared with positive ones, but its effect on decision-making would depend on the context. In risky decisions, negativity bias could lead to non-rational choices by increasing loss aversion; yet in ambiguous decisions, it could favor reinforcement-learning and better decisions by increasing sensitivity to punishments. Nevertheless, these hypotheses have not been tested to date. Our aim was to fill this gap. Sixty-nine participants rated ambiguous emotional faces (from the NimStim set) as positive or negative to assess negativity bias. The implicit level of the bias was also obtained by tracking the mouse’s trajectories when rating faces. Then, they performed both a risky and an ambiguous decision-making task. Participants displayed negativity bias, but only at the implicit level. In addition, this bias was associated with loss aversion in risky decisions, and with greater performance through the ambiguous decisional task. These results highlight the need to contextualize biases, rather than draw general conclusions about whether they are inherently good or bad.

Suggested Citation

  • Francisco Molins & Celia Martínez-Tomás & Miguel Ángel Serrano, 2022. "Implicit Negativity Bias Leads to Greater Loss Aversion and Learning during Decision-Making," IJERPH, MDPI, vol. 19(24), pages 1-11, December.
  • Handle: RePEc:gam:jijerp:v:19:y:2022:i:24:p:17037-:d:1007478
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    References listed on IDEAS

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    1. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    2. Bechara, Antoine & Damasio, Antonio R., 2005. "The somatic marker hypothesis: A neural theory of economic decision," Games and Economic Behavior, Elsevier, vol. 52(2), pages 336-372, August.
    3. Daniel Kahneman & Jack L. Knetsch & Richard H. Thaler, 1991. "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 193-206, Winter.
    4. Daniel Kahneman, 2003. "Maps of Bounded Rationality: Psychology for Behavioral Economics," American Economic Review, American Economic Association, vol. 93(5), pages 1449-1475, December.
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