scholarly journals Preferences and beliefs about financial risk taking mediate the association between anterior insula activation and self-reported real-life stock trading

2018 ◽  
Vol 8 (1) ◽  
Author(s):  
Alexander N. Häusler ◽  
Camelia M. Kuhnen ◽  
Sarah Rudorf ◽  
Bernd Weber
2020 ◽  
Author(s):  
Tobias Baer ◽  
Simone Schnall

Making decisions over extended periods of time is cognitively taxing and can lead to decision fatigue, which is linked to a preference for the ‘default’ option, namely whatever decision involves the least cognitive effort. Such effects have been demonstrated across a number of applied settings, including forensic and clinical contexts. An open question, however, is whether this necessarily leads to worse decision outcomes. Using 26,501 credit restructuring applications evaluated by credit officers of a major bank, here we show that in this real-life financial risk taking context credit loan approvals across the course of a day decreased during midday compared to early or later in the workday, reflecting a preference for the default option. We then modeled the bank’s additional credit collection if all decisions had been made during early morning levels of approval. This would have resulted in $509,023 extra revenue for the bank, for one month. Thus, we provide further evidence for decision-fatigue, and that it can have a substantial negative impact in the finance sector that warrants considerations to counteract it.


2021 ◽  
Author(s):  
Amos Nadler ◽  
Matthias Wibral ◽  
Thomas Dohmen ◽  
Armin Falk ◽  
Alessandro Previtero ◽  
...  

The sex steroid hormone testosterone regulates male-typical behaviors such as aggression and displays of dominance in non-human animals. According to the Challenge Hypothesis, these effects arise from context-sensitive testosterone increases that facilitate inter-male competitions over resources, status, and mates. A growing literature documents similar effects of testosterone on economic behaviors related to competition and risk-taking in humans, though findings to date have been mixed. Here, we report two randomized double-blind placebo-controlled testosterone administration experiments, whose combined sample (N = 334) is substantially larger than any previous investigation of the topic (N1 = 91, N2 = 243). The studies were designed independently by research groups in Europe and the US, and both investigated testosterone’s effects on men’s willingness to compete, confidence, and risk-taking—dimensions of economic behavior that are theoretically linked to the Challenge Hypothesis, show robust sex differences, and predict important real-life outcomes such as career choice. We find no evidence for effects of testosterone on any of the behavioral tasks studied across the two experiments, with effect point estimates that are small and inconsistent. The studies had 90% statistical power to detect effects that are larger than d = 0.68 and d = 0.42 respectively, and equivalence tests confidently reject effects that are greater than these magnitudes. Our findings cast doubt on the proposition that testosterone is a meaningful causal driver of the stereotypically “masculine” dimensions of economic behavior studied, and suggest that even if true effects existed, detecting them experimentally would be challenging.


2013 ◽  
Author(s):  
Rod Duclos ◽  
Echo Wen Wan ◽  
Yuwei Jiang

2021 ◽  
Author(s):  
Cai Xing ◽  
Tingting Liu ◽  
Xi Zhang

It has been well documented that men are much more likely to provide heroic assistance in emergencies (Johnson, 1996). However, such heroic rescue disobeys the theory of evolution (Darwin, 1871). Studies investigated charitable donations suggested that public prosocial behaviors might be considered as costly signaling behaviors, serving the function of displaying one’s wealth and generosity, with the ultimate goal of attracting potential mates (Griskevicius et al., 2007). Although heroic rescue meets the four criteria of costly signaling behaviors, there was no direct evidence supporting the notion that heroic rescue, like public charity, also serves the function of attracting potential mates. The present study directly tests this possibility by examining the effect of mating motivation on men and women’s heroic rescue tendencies in emergent situations. The present study used a 2 (gender: male vs. female) × 2 (mating motivation induction vs. control condition) study design, and participants (N = 196, 90 males and 106 females; Mage = 22.36, SD = 2.89) were randomly assigned to the mating condition and control condition. In line with the previous studies (Durante & Li, 2009; Griskevicius et al., 2007; Hill & Durante, 2011; Roney, 2003; Wilson & Daly, 2004), mating motivation was induced by photographs of highly attractive opposite sex. Then, heroic rescue tendencies were measured by the questionnaire of Griskevicius et al. (2007), which consisted of five emergent situations. Participants’ risk-taking tendencies on financial decisions were also measured by a 10-item questionnaire developed by Liu (2010). The total scores of each of these two questionnaires served as the dependent variables. The results of the experiments showed a significant interaction between gender and mating priming on heroic behaviors: after mating motivation induction, male participants showed higher intentions of heroic rescue, whereas female participants showed lower intentions of heroic rescue. The present study also replicated previous findings (McAlvanah, 2009; Li & Zhang, 2010) regarding the effect of mating motivation priming on financial risk taking: mating motivation induction increased risk-taking tendency in financial decisions, males tend to be more risk seeking in making financial decisions, and there was no significant interaction between gender and mating priming on financial risk-taking decisions. Results from the financial decisions further confirmed the representativeness of the sample recruited in the current study and further validated the results on heroic behaviors. Based on the Costly Signaling Theory (Smith & Bird, 2001), these results concurred with the hypotheses that heroic behaviors served the function of displaying men’s advantages, such as vigor and responsibility, to potential mates and winning the intersexual selection (Farthing, 2005; Kelly & Dunbar, 2001). However, for women, the high-risk of heroic behaviors have potential harm to their offspring and are unattractive to men (Taylor et al., 2000). Thus, after eliciting the mating motivation, women would avoid the risk and reduced their intentions to offer heroic rescue in emergencies.


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