The Network for Integrated Behavioural Science  
University of Nottingham
  

On the priming of risk preferences: The role of fear and general affect - Journal of Economic Psychology, available online 4 January 2019

Abstract: Priming is an established tool in psychology for investigating aspects of cognitive processes underlying decision making and is increasingly applied in economics. We report a systematic attempt to test the reproducibility and generalisability of priming effects on risk attitudes in a more diverse population than professionals and students, when priming using either a positive or a negative experience. We further test fear as the causal mechanism underlying countercyclical risk aversion. Across a series of experiments with a total sample of over 1900 participants, we are unable to find any systematic effect of priming on risk preferences. Moreover, our results challenge the role of fear as the mechanism underlying countercyclical risk aversion; we find evidence of an impact of general affect such that the better our participants feel, the more risk they take.

Authors:  Despoina Alempaki, Chris Starmer and Fabio Tufano

 

 

Posted on Friday 11th January 2019

NIBS - Network for Integrated Behavioural Science

Sir Clive Granger Building
School of Economics
The University of Nottingham
University Park
Nottingham NG7 2RD

telephone: +44 (0)115 84 66067
email: chris.starmer@nottingham.ac.uk