Regulatory focus and investment decisions in small groups

Regulatory Focus Theory was applied to small interactive groups. Based on previous research, it was expected that groups with a promotion focus would discuss gain-relevant information, whereas groups with a prevention focus would be concerned with potential losses. Furthermore, promotion groups were expected to make riskier decisions than prevention groups. Regulatory focus was manipulated by rewarding good or penalizing poor group performance on a preliminary task. Subsequently, three-person groups discussed several investment funds and made a consensual investment decision. Results supported the hypotheses and suggested that regulatory focus requires time to exert its influence in groups.