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dc.contributor.author
Fehr, Helga
dc.contributor.author
Epper, Thomas
dc.contributor.author
Bruhin, Adrian
dc.contributor.author
Schubert, Renate
dc.date.accessioned
2017-06-08T17:48:32Z
dc.date.available
2017-06-08T17:48:32Z
dc.date.issued
2007
dc.identifier.issn
1424-0459
dc.identifier.uri
http://hdl.handle.net/20.500.11850/7457
dc.description.abstract
When valuing risky prospects, people tend to overweight small probabilities and to underweight large probabilities. Nonlinear probability weighting has proven to be a robust empirical phenomenon and has been integrated in decision models, such as cumulative prospect theory. Based on a laboratory experiment with real monetary incentives, we show that incidental emotional states, such as preexisting good mood, have a significant effect on the shape of the probability weighting function, albeit only for women. Women in a better than normal mood tend to exhibit mood-congruent behavior, i.e. they weight probabilities of gains and losses relatively more optimistically. Men’s probability weights are not responsive to mood state. We find that the application of a mechanical decision criterion, such as the maximization of expected value, immunizes men against effects of incidental emotions. 40% of the male participants indeed report applying expected values as decision criterion. Only a negligible number of women do so.
dc.language.iso
en
dc.publisher
Sozialökonomisches Institut
dc.title
Risk and Rationality
dc.type
Working Paper
ethz.title.subtitle
The Effect of Incidental Mood on Probability Weighting
ethz.journal.title
Working paper series
ethz.journal.issue
0703
ethz.size
27 p.
ethz.notes
Working Paper No. 0703..
ethz.publication.place
Zurich
ethz.publication.status
published
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02045 - Dep. Geistes-, Sozial- u. Staatswiss. / Dep. of Humanities, Social and Pol.Sc.::03361 - Schubert, Renate (emeritus) / Schubert, Renate (emeritus)
ethz.leitzahl.certified
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02045 - Dep. Geistes-, Sozial- u. Staatswiss. / Dep. of Humanities, Social and Pol.Sc.::03361 - Schubert, Renate (emeritus) / Schubert, Renate (emeritus)
ethz.identifier.url
http://www.soi.uzh.ch/research/wp/2007/wp0703.pdf
ethz.date.deposited
2017-06-08T17:48:55Z
ethz.source
ECIT
ethz.identifier.importid
imp59364bb39d24954039
ethz.ecitpid
pub:18014
ethz.eth
yes
ethz.availability
Metadata only
ethz.rosetta.installDate
2017-07-18T15:29:40Z
ethz.rosetta.lastUpdated
2021-02-14T04:56:31Z
ethz.rosetta.versionExported
true
ethz.COinS
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