Professional Documents
Culture Documents
DECISION-MAKING SITUATIONS
Julia Hosch
CONSEQUENTIALIST THEORY OF
ECONOMICS
Immediate Emotions
External Forces
Loewenstein, 2012
INTEGRAL EMOTIONS ON DECISION-
MAKING
Integral emotions influence risky decision making
Arousal affects risk attitudes, but does not affect risk
perception.
“Somatic Markers”: affective ‘tags’ attached to sensory
images, ‘marking’ each image with an emotional
association
Reduce the number of options under consideration, making
decision-making process more efficient (Thompson, 2009,
123)
Willingness to insure against a variety of risk
Sunshine amounts economic gain or loss in a given year
(Hirshliefer and Shumway, 2007)
ARIELY STUDY: INDUCED INTEGRAL AFFECT
LASTS LONGER THAN ORIGINALLY ANTICIPATED
Practice Habits