Priming the Risk Attitudes of Professionals in Financial Decision Making*

Investing the self: The effect of nonconscious goals on investor psychological ownership and word-of-mouth intentions

“…Further, our results offer the first evidence that this effect depends on the decision process used. Second, whereas prior research demonstrates the effect of nonconscious trait-based risk primes on behavioral outcomes (Erb, Bioy, and Hilton, 2002;Gilad and Kliger, 2008), we show that nonconscious risk-related primes can activate motivational goals beyond simple cognitive associational effects. Third, we provide the first empirical evidence that psychological ownership may play an important role in investing contexts.…”

“…First, the effect of nonconscious risk priming has been shown to affect risk aversion in subsequent behavior (Erb, Bioy, and Hilton, 2002) and financial decision-making (Gilad and Kliger, 2008). We extend this research by showing that the effect of nonconscious cues extends beyond simple trait priming to the activation of motivational risk-related goals which affect post-decision outcomes, and that these outcomes depend on the decision process used.…”

Theories of choice under risk: Insights from financial markets

“…The first two-parameter specification we use (Lattimore et al, 1992;Tversky and Fox, 1995;Gonzalez and Wu, 1999) is of the following functional form:…”

“…The weighting function used byTversky and Fox (1995) is similar to that ofLattimore et al (1992) andGonzalez and Wu (1999).…”

Preferences induced by accessibility: Evidence from priming.

“…Subject to numerous psychological debates, the priming paradigm has been typically defined in memory research as a process of activating particular connections or associations in memory before an action or task is carried out (e.g., Bruner, 1957;Cramer, 1968;Higgins & King, 1981;Higgins, Rohles, & Jones, 1977;Mitchell, 2006;Tulving, 1983). The associations occur when a certain stimulus or event increases the accessibility of a specific informative category, which influences information-processing and, as a result, affects decision making (e.g., Erb, Bioy, & Hilton, 2002;Gilad & Kliger, 2008;Schacter, 1992;Tulving & Schacter, 1990, 1992Tulving, Schacter, & Stark, 1982).…”