Emotional balance and probability weighting

Emotional balance and probability weighting

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Article ID: iaor20134260
Volume: 75
Issue: 1
Start Page Number: 17
End Page Number: 41
Publication Date: Jul 2013
Journal: Theory and Decision
Authors: , , , ,
Keywords: demography, psychology, utility
Abstract:

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.

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