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The effect of emotion and time pressure on risk decision-making

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  • Yixin Hu
  • Dawei Wang
  • Kaiyuan Pang
  • Guangxing Xu
  • Jinhong Guo

Abstract

Emotion and time pressure are two important factors affecting risk decision-making. This study explored the interaction of emotion and time pressure on risk decision-making by adopting 3 (emotion state: positive emotion, negative emotion, and control group)×2 (time constraint: high time constraint and no time constraint) between-subject experiment design. The results showed that (1) both emotion and time pressure exerted significant effect on risk decision-making (generally, positive emotion renders participants more risk prone than negative emotion, and high time pressure promotes people more risk seeking than no time pressure); (2) time pressure polarized the effects of different emotions on risk decision-making. As effects of emotions were polarized under high time pressure, two distinct cognitive pathways may function in human decision-making. Based on our experimental result and previous neuroeconomic works, we proposed a novel dual cognitive pathways model to explain phenomenon in the current article.

Suggested Citation

  • Yixin Hu & Dawei Wang & Kaiyuan Pang & Guangxing Xu & Jinhong Guo, 2015. "The effect of emotion and time pressure on risk decision-making," Journal of Risk Research, Taylor & Francis Journals, vol. 18(5), pages 637-650, May.
    • Handle: RePEc:taf:jriskr:v:18:y:2014:i:5:p:637-650
    DOI: 10.1080/13669877.2014.910688
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    Cited by:

    1. Martin G. Kocher & David Schindler & Stefan T. Trautmann & Yilong Xu, 2019. "Risk, time pressure, and selection effects," Experimental Economics, Springer;Economic Science Association, vol. 22(1), pages 216-246, March.
    2. Miha Dominko & Miroslav Verbič, 2020. "Subjective Quality of Life and Stock Market Participation of the Elderly: A Structural Equation Modelling Approach," Journal of Family and Economic Issues, Springer, vol. 41(3), pages 505-519, September.
    3. Franziska Neumann, 2017. "Antecedents and effects of emotions in strategic decision-making: a literature review and conceptual model," Management Review Quarterly, Springer, vol. 67(3), pages 175-200, June.
    4. Rob Kim Marjerison & Jiamin Hu & Hantao Wang, 2022. "The Effect of Time-Limited Promotion on E-Consumers’ Public Self-Consciousness and Purchase Behavior," Sustainability, MDPI, vol. 14(23), pages 1-23, December.
    5. Naci Akdemir & Serkan Yenal, 2021. "How Phishers Exploit the Coronavirus Pandemic: A Content Analysis of COVID-19 Themed Phishing Emails," SAGE Open, , vol. 11(3), pages 21582440211, July.
    6. Lane, Tom, 2017. "How does happiness relate to economic behaviour? A review of the literature," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 68(C), pages 62-78.
    7. Zhixin Xie & Lionel Page & Ben Hardy, 2016. "Investigating gender differences under time pressure in financial risk taking," QuBE Working Papers 045, QUT Business School.
    8. Dilmaghani, Maryam, 2020. "Gender differences in performance under time constraint: Evidence from chess tournaments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 89(C).
    9. Matteo M. Marini, 2022. "20 years of emotions and risky choices in the lab: A meta-analysis," Working Papers 2022/03, Economics Department, Universitat Jaume I, Castellón (Spain).
    10. Banerjee, Priyodorshi & Das, Tanmoy, 2021. "Risky decision under laboratory deadline with experience and indirect self-selection," Journal of Behavioral and Experimental Finance, Elsevier, vol. 29(C).

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