Incidental emotions and risk-taking: An experimental analysis

Colasante, Annarita and Marini, Matteo M. and Russo, Alberto (2017): Incidental emotions and risk-taking: An experimental analysis.

Abstract

In this paper we test in a controlled environment the impact of incidental emotions induced through musical stimuli on individual risk-taking behavior. A modified version of the Multiple Price List method is used to elicit risk preference. We find that both positive and negative stimuli make experimental subjects more risk averse than subjects in the neutral treatment. This result is obtained with respect to the first lottery, while the impact of music on risk-taking is not statistically significant in the subsequent lottery, meaning that its effect vanishes as time elapses.

• Item Type: MPRA Paper
• Language: English
• Keywords: laboratory experiment, music, mood induction, preference elicitation, risk aversion.
• Subjects: C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty

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