Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/208095
Authors: 
Gärtner, Manja
Tinghög, Gustav
Västfjäll, Daniel
Year of Publication: 
2019
Series/Report no.: 
Discussion Paper No. 195
Abstract: 
We test the effects of dual processing differences in both individual traits and decision states on risk taking. In an experiment with a large representative sample (N = 1,832), we vary whether risky choices are induced to be based on either emotion or reason, while simultaneously measuring individual decision-making traits. Our results show that decision-making traits are strong and robust determinants of risk taking: a more intuitive trait is associated with more risk taking, while a more deliberative trait is associated with less risk taking. Experimentally induced states, on the other hand, have no effect on risk taking. A test of state-trait interactions shows that the association between an intuitive trait and risk taking becomes weaker in the emotion-inducing state and in the loss domain. In contrast, the association between a deliberative trait and risk taking is stable across states. These findings highlight the importance of considering state-trait interactions when using dual processing theories to predict individual differences in risk taking.
Subjects: 
risk preferences
intuition
emotion
reason
experiment
JEL: 
C91
D81
D91
Document Type: 
Working Paper

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