Explanation of foreknowledge and managing unintended influences

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Authors: Carolin Kaiser, Hygerta Gjolena, Yael Ecker, Anja Briem
Cited by: 0

Abstract

How does a joyful emotion or an angry emotion influence the financial risk-taking of individuals? Financial risk is a recurring situation in which people have to make a decision on how much risk they are willing to take regarding the financial opportunity. Existing data suggests that emotion influences this decision. A positive emotional state is linked to higher risk taking than a negative emotional state. However, as always findings aren't clear, especially regarding the influence of anger on risk taking. Data shows either a negative effect or no effect and sometimes a positive effect. To further investigate these findings, our study examines the effects of a joyful emotion or an angry emotion compared to a neutral emotion on financial risk-taking. We also broaden this area of study by incorporating a misattribution factor. By making some participants aware of their emotions, this manipulation would disrupt the mechanism of unconsciously misattributing the induced emotions to the subsequent task. The aim is to investigate whether differences arise after participants recognize their affect in the risk-taking task.

Fields of Study & Subjects

Decision-Making and Behavioral Economics Financial Literacy Pension Retirement Analysis Neural and Behavioral Psychology Studies

Publication details

Publication date
1 January 2026
Document type
Preprint