Emotion regulation and decision making under risk and uncertainty.

Heilman, Renata M.; Crişan, Liviu G.; Houser, Daniel; Miclea, Mircea; Miu, Andrei C.

doi:10.1037/a0018489

Cited by 307 publications

(236 citation statements)

References 89 publications

(127 reference statements)

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“…Our study, in conjunction with other work showing effective emotion regulation to diminish susceptibility to cognitive biases (e.g. Heilman, et al, 2010;Sokol-Hessner et al, 2010) suggests that an important component of such learning effects may be learning to more effectively regulate the emotions that are both incidental and integral to high stakes financial decision-making.…”

Section: Discussionsupporting

confidence: 55%

Emotion regulation and trader expertise: Heart rate variability on the trading floor.

Fenton-O’Creevy¹,

Lins²,

Vohra³

et al. 2012

Journal of Neuroscience, Psychology, and Economics

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We describe a psychophysiological study of the emotion regulation of investment bank traders. Building on work on the role of emotions in financial decision making, we examined the relationship between market conditions, trader experience, and emotion regulation while trading, as indexed by high-frequency heart rate variability (HF HRV). We found a significant inverse relationship between HF HRV and market volatility and a positive relationship between HF HRV and trader experience. We argue that this suggests that emotion regulation may be an important facet of trader expertise, and that learning effects demonstrated in financial markets may include improved emotion regulation as an important component of that learning. Our results also suggest the value of investigating the role of effective emotion regulation in a broader range of financial decision-making contexts.

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Section: Discussionsupporting

confidence: 55%

Emotion regulation and trader expertise: Heart rate variability on the trading floor.

Fenton-O’Creevy¹,

Lins²,

Vohra³

et al. 2012

Journal of Neuroscience, Psychology, and Economics

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show abstract

“…Angry and frustrated investor's may be more 8 Despite being difficult to control, people regularly make efforts to control their experience of emotions and the effects of those emotions on decision making processes (Gross, 2002). Indeed, it has been shown that an individual's ability to effectively control their emotions has implications for their decision making processes under uncertain conditions (Heilman et al, 2010). While individual differences in degree of emotional regulation likely explain some variance in the behaviors that we explore with this study, our recalibrational model is not a model of individual differences.…”

Section: Introductionmentioning

confidence: 99%

Predictable and Predictive Emotions: Explaining Cheap Signals and Trust Re-Extension

Schniter

Sheremeta

2014

SSRN Journal

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Despite normative predictions from economics and biology, unrelated strangers will often develop the trust necessary to reap gains from one-shot economic exchange opportunities. This appears to be especially true when declared intentions and emotions can be cheaply communicated. Perhaps even more puzzling to economists and biologists is the observation that anonymous and unrelated individuals, known to have breached trust, often make effective use of cheap signals, such as promises and apologies, to encourage trust re-extension. We used a pair of trust games with one-way communication and an emotion survey to investigate the role of emotions in regulating the propensity to message, apologize, re-extend trust, and demonstrate trustworthiness. This design allowed us to observe the endogenous emergence and natural distribution of trust-relevant behaviors, remedial strategies used by promise-breakers, their effects on behavior, and subsequent outcomes. We found that emotions triggered by interaction outcomes are predictable and also predict subsequent apology and trust re-extension. The role of emotions in behavioral regulation helps explain why messages are produced, when they can be trusted, and when trust will be re-extended.Keywords: emotion, cheap signal, promise, apology, trust game, reciprocity, experiment INTRODUCTIONIn this paper, we explore the role of positive emotions (pride, believability, appreciation, contentment, cheerfulness, happiness) and negative emotions (guilt, shame, anger, disgust, aggravation, frustration) in regulating cheap signaling, trust re-extension, and trustworthy behavior in the wake of a veiled trust-based interaction between strangers with no explicit indication of certain expectation for repeated interaction 1 . Interactions with 1 A number of other behavioral economic studies have also used veiled designs where interacting participants are unaware of opportunity for repeated interaction(s) that will later be made available (e.g., see Binmore et al., 1985;Burnham et al., 2000;Ellingsen et al., 2010;Gambetta and Székely, 2014). Ellingsen et al. (2010, p. 96) discuss why the veiled design avoiding deception by commission does not violate the non-deception norm in behavioral economic experiments and why withholding procedural information may serve to limit undesirable experimenter demand. Nevertheless, because there is no clear agreement among economists as to what kinds of deception are taboo (see survey results by Krawczyk, 2013 and discussion by Wilson, 2014), deception by omission remains a potential concern with our design. Veiled designs may create negative externality in that the next time participants return to the laboratory to participate in other studies, they may question whether they should anticipate unannounced tasks or interactions, unless the instructions explicitly exclude such a possibility (see also Davis and Holt, 1993, pp. 23-24;Wilson, 2014). It is unlikely that our design produced these externalities, however, as we followed the procedural norm for conducting...

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“…These cultural characteristics can have consequences on emotion regulation (Matsumoto, 2006) and may impact not only the scores obtained by consumers on the four dimensions of childlike consumer behavior but also the dimensions themselves. For example, decision-making, which is related to the reality conflict and control of aggression dimensions, is also related to emotion regulation (Heilman, Crişan, Houser, Miclea, & Miu, 2010).…”

Section: Limitationsmentioning

confidence: 99%

Consumer Neoteny

Oliver

2016

Evol Psychol

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This research explores childlike consumer behavior from an evolutionary perspective. More specifically, it uses the concept of neoteny to show that the retention of ancestors' juvenile characteristics is related to specific behaviors. The results of factor analyses conducted on a UK sample (n ¼ 499) and a French sample (n ¼ 292) 7 years later indicate four dimensions of childlike consumer behavior, namely, stimulus seeking, reality conflict, escapism, and control of aggression.

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Emotion regulation and decision making under risk and uncertainty.

Cited by 307 publications

References 89 publications

Emotion regulation and trader expertise: Heart rate variability on the trading floor.

Emotion regulation and trader expertise: Heart rate variability on the trading floor.

Predictable and Predictive Emotions: Explaining Cheap Signals and Trust Re-Extension

Consumer Neoteny

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