Article ID: | iaor20134260 |
Volume: | 75 |
Issue: | 1 |
Start Page Number: | 17 |
End Page Number: | 41 |
Publication Date: | Jul 2013 |
Journal: | Theory and Decision |
Authors: | Charupat Narat, Deaves Richard, Derouin Travis, Klotzle Marcelo, Miu Peter |
Keywords: | demography, psychology, utility |
We find suggestive evidence that emotional balance has an impact on probability weighting incremental to demographic controls. Specifically, low negative affectivity (implying high emotional balance) tends to be a characteristic of those whose probability weighting functions exhibit lower curvature and more neutral elevation. In other words, emotional balance seems to push people in the direction of normative expected utility theory.