Article ID Journal Published Year Pages File Type
7384055 Research in Economics 2018 40 Pages PDF
Abstract
We measure anxiety by skin conductance response (SCR) in an economic setting. In “clock” games, six agents receive private signals when an asset's price exceeds its fundamental value. They can sell for immediate value or wait to sell at a higher value. Waiting is risky because the price crashes to a lower value when three agents sell. Anxiety could lead people to sell too quickly when the game is played dynamically over time, compared to a static version with precommitted selling. Empirically, delays are shorter in dynamic games than in payoff-equivalent static games, and are associated with anxiety as measured.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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