Eliciting risk and time preferences under induced mood states

Andreas C. Drichoutis, Rodolfo M. Nayga, Jr

Research output: Contribution to journalArticle

20 Citations (Scopus)

Abstract

We test whether induced mood states have an effect on elicited risk and time preferences in a conventional laboratory experiment. We jointly estimate risk and time preferences and find that both negative and positive mood states increase patience as well as risk aversion but the magnitude of the effects differs between mood states. Results also suggest that risk preferences are affected by whether a cognitively demanding task precedes a risk preference elicitation task but only when a negative mood was induced.

Original languageEnglish
Pages (from-to)18-27
Number of pages10
JournalJournal of Socio-Economics
Volume45
DOIs
Publication statusPublished - 2013 Aug 1
Externally publishedYes

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Keywords

  • Affect
  • Discount rates
  • Lab experiment
  • Mood
  • Risk aversion

ASJC Scopus subject areas

  • Economics and Econometrics

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