Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7244650 | Journal of Economic Psychology | 2015 | 15 Pages |
Abstract
The paper offers a comprehensive analysis of causes and consequences of the accumulation of emotional experience, measured via skin conductance response, when taking risky choices. A large experimental data set was obtained from a psycho-physiological task conducted with 645 bank customers and financial professionals. With respect to causes, we found that the individual emotional response to gains/losses is trend-dependent and influenced by habituation, as well as by anchoring/framing due to the external layout of risky alternatives. With respect to consequences, we found evidence that the somatic reinforcement experience is able to guide asset picking, but within a long-term strategy. Consequently, selection behaviors were observed in a portfolio mean-variance framework, revealing that somatic markers lead individuals to pursue a long-term 'psycho-economic' efficiency that integrates factual information (monetary outcomes) with the implicit subjective experience.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Marketing
Authors
Caterina Lucarelli, Pierpaolo Uberti, Gianni Brighetti, Mario Maggi,