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Incidental emotions and risk-taking: An experimental analysis

Author

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  • Colasante, Annarita
  • Marini, Matteo M.
  • Russo, Alberto

Abstract

In this paper we test in a controlled environment the impact of incidental emotions induced through musical stimuli on individual risk-taking behavior. A modified version of the Multiple Price List method is used to elicit risk preference. We find that both positive and negative stimuli make experimental subjects more risk averse than subjects in the neutral treatment. This result is obtained with respect to the first lottery, while the impact of music on risk-taking is not statistically significant in the subsequent lottery, meaning that its effect vanishes as time elapses.

Suggested Citation

  • Colasante, Annarita & Marini, Matteo M. & Russo, Alberto, 2017. "Incidental emotions and risk-taking: An experimental analysis," MPRA Paper 76992, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:76992
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    Cited by:

    1. Marini, Matteo M., 2022. "Does gender moderate the influence of emotions on risk-taking? The meta-analysis reloaded," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).
    2. Matteo M. Marini, 2021. "Does gender moderate the influence of emotions on risk-taking? A robustness check," Working Papers 2021/06, Economics Department, Universitat Jaume I, Castellón (Spain).
    3. Filiz, Ibrahim & Nahmer, Thomas & Spiwoks, Markus, 2019. "Herd behavior and mood: An experimental study on the forecasting of share prices," Journal of Behavioral and Experimental Finance, Elsevier, vol. 24(C).
    4. Matteo M. Marini, 2021. "20 years of emotions and risky choices in the lab: A meta-analysis," Working Papers 2021/04, Economics Department, Universitat Jaume I, Castellón (Spain).
    5. Matteo M. Marini, 2022. "Does gender moderate the influence of emotions on risk-taking? A robustness check," Working Papers 2022/04, Economics Department, Universitat Jaume I, Castellón (Spain).
    6. 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).
    7. Matteo M. Marini, 2018. "20 years of emotions and risky choices in the lab: A meta-analysis," Working Papers 2018/14, Economics Department, Universitat Jaume I, Castellón (Spain).

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    More about this item

    Keywords

    laboratory experiment; music; mood induction; preference elicitation; risk aversion.;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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