scholarly journals Happiness and Time Preference: The Effect of Positive Affect in a Random-Assignment Experiment

2011 ◽  
Vol 101 (7) ◽  
pp. 3109-3129 ◽  
Author(s):  
John Ifcher ◽  
Homa Zarghamee
Keyword(s):  
Decision Making ◽  
Positive Affect ◽  
Time Preference ◽  
Random Assignment ◽  
Economic Decision ◽  
Economic Decision Making ◽  
Future Utility ◽  
Neutral Affect

We conduct a random-assignment experiment to investigate whether positive affect impacts time preference, where time preference denotes a preference for present over future utility. Our result indicates that, compared to neutral affect, mild positive affect significantly reduces time preference over money. This result is robust to various specification checks, and alternative interpretations of the result are considered. Our result has implications for the effect of happiness on time preference and the role of emotions in economic decision making, in general. Finally, we reconfirm the ubiquity of time preference and start to explore its determinants. (DJEL D12, D83, I31)

The neural mechanisms of affect infusion in social economic decision-making: A mediating role of the anterior insula

NeuroImage ◽  
2012 ◽  
Vol 61 (1) ◽  
pp. 32-40 ◽  
Author(s):  
Katia M. Harlé ◽  
Luke J. Chang ◽  
Mascha van 't Wout ◽  
Alan G. Sanfey
Keyword(s):  
Decision Making ◽  
Social Economic ◽  
Anterior Insula ◽  
Neural Mechanisms ◽  
Economic Decision ◽  
Mediating Role ◽  
Economic Decision Making

A Cross-Cultural Examination of the Role of Time Representation in Economic Decision-Making

2020 ◽  
Vol 87 (9) ◽  
pp. S134
Author(s):  
Denise Croote ◽  
Baojun Lai ◽  
Jingchu Hu ◽  
Alison Montagrin ◽  
Daniela Schiller
Keyword(s):  
Decision Making ◽  
Cross Cultural ◽  
Economic Decision ◽  
Time Representation ◽  
Economic Decision Making

scholarly journals The Role of Cognitive and Emotional Perspective Taking in Economic Decision Making in the Ultimatum Game

PLoS ONE ◽  
2014 ◽  
Vol 9 (9) ◽  
pp. e108462 ◽  
Author(s):  
Haruto Takagishi ◽  
Michiko Koizumi ◽  
Takayuki Fujii ◽  
Joanna Schug ◽  
Shinya Kameshima ◽  
...  
Keyword(s):  
Decision Making ◽  
Perspective Taking ◽  
Ultimatum Game ◽  
Economic Decision ◽  
Economic Decision Making

scholarly journals Abnormal Causal Attribution Leads to Advantageous Economic Decision-making: A Neuropsychological Approach

2013 ◽  
Vol 25 (8) ◽  
pp. 1372-1382 ◽  
Author(s):  
Timothy R. Koscik ◽  
Daniel Tranel
Keyword(s):  
Decision Making ◽  
Causal Attribution ◽  
Situational Factors ◽  
Neural Basis ◽  
Correspondence Bias ◽  
Economic Decision ◽  
Social Inference ◽  
Economic Decision Making ◽  
Situational Information

People tend to assume that outcomes are caused by dispositional factors, for example, a person's constitution or personality, even when the actual cause is due to situational factors, for example, luck or coincidence. This is known as the “correspondence bias.” This tendency can lead normal, intelligent persons to make suboptimal decisions. Here, we used a neuropsychological approach to investigate the neural basis of the correspondence bias, by studying economic decision-making in patients with damage to the ventromedial pFC (vmPFC). Given the role of the vmPFC in social cognition, we predicted that vmPFC is necessary for the normal correspondence bias. In our experiment, consistent with expectations, healthy (n = 46) and brain-damaged (n = 30) comparison participants displayed the correspondence bias during economic decision-making and invested no differently when given dispositional or situational information. By contrast, vmPFC patients (n = 17) displayed a lack of correspondence bias and invested more when given dispositional than situational information. The results support the conclusion that vmPFC is critical for normal social inference and the correspondence bias. The findings help clarify the important (and sometimes disadvantageous) role of social inference in economic decision-making.

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