The Emotional Information Processing System is Risk Averse: Ego-Depletion and Investment Behavior
2008-10-20
Research Paper
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Two experiments show that a shortage of self-regulatory resources results in more risk aversion in mixed-gamble (gain/loss) situations. The findings support a dual process view that distinguishes between a rational and an affective information processing system, in which self-regulatory resources are the necessary fuel for the rational system. Depending on the expected values of risk seeking versus risk averse behavior, ego depletion can have negative (experiment 1) as well as positive (experiment 2) consequences for investment behavior.
Keywords
Classifications using
Journal of Economic Literature (JEL) Classification System
- G11 : Portfolio Choice; Investment Decisions
- M : Business Administration and Business Economics; Marketing; Accounting
- G14 : Information and Market Efficiency; Event Studies
- C44 : Statistical Decision Theory; Operations Research
- M31 : Marketing
Automatically Extracted Terms
- system
- decision
- participant
- resource
- behavior
- value
- risk aversion
- investment
- research
- processing
- information processing system
- aversion
- stroop task
- outcome
- iowa gambling task
- investment decisions
- study
- control
- gambling
- depletion
