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Inducing Emotions

Przegląd

Source: William Brady & Jay Van Bavel—New York University

Psychologists have long known that people behave differently in good moods versus bad moods, and this general principle extends to consumer behavior. Economists, as well, have come to appreciate that an individual’s financial decisions are not solely the result of extensive cost-benefit calculations; other factors like emotion are at play. Further, incidental emotions affect the behavior of buyers and sellers even though they are unrelated to the transaction at hand. While earlier research focused on the impact of global feelings (positive-negative), more recent research examines more specific emotions (e.g., anger and fear). In consumer settings, research shows that anger triggers greater risk-seeking behavior among buyers and sellers and that fear triggers the opposite, i.e., conservative behavior.  

The following experiment tests how two specific negative emotions—disgust and sadness—influence people’s financial valuation of objects.1 The experiment examines the relationships between induced emotional states (disgust and sadness) and the endowment effect. Inherent in this experiment is a common technique for inducing specific emotions in a laboratory setting. Once the emotions are created, they can then be implemented in a number of experimental conditions.

Procedura

1. Participant Recruitment

  1. Conduct a power analysis and recruit a sufficient number of participants with a diversity of age and gender.
  2. Randomly assign participants in the experimental and control conditions.

2. Data Collection

  1. Seat participants in individual cubicles, each equipped with a computer and headphones.
  2. Tell participants that they were going to complete two separate studies and give participants two packets of material, one for each

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Wyniki

The data (Figure 1) show support for the idea that compared to the neutral condition, sadness decreased the prices for those in the selling condition, but increased prices for those in the choice condition. However, compared to the neutral condition, disgust reduced prices for participants in both the selling and choice conditions.

Figure 1
Figure 1: Results showing average

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Wniosek i Podsumowanie

Although they are both negative emotions, disgust and sadness trigger different economic behavior. Disgust triggers the psychological need to expel, thus reducing both buying and selling prices. Conversely, sadness triggers the psychological need to change one’s circumstances, thus increasing buying prices and decreasing selling prices. With disgust, the endowment effect is eliminated, whereas with sadness the effect is reversed.

Emotion and cognition influence one another. Our appraisal

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Odniesienia
  1. Lerner, J. S., Small, D. A., & Lowenstein, G. (2004). Heart strings and purse strings: Carryover Effects of emotions on economic decisions. Psychological Science, 15, 337-341.
Tagi
Inducing EmotionsConsumer BehaviorFinancial DecisionsCost benefit CalculationsEmotion In ValuationRisk seeking BehaviorNegative StatesIncidental EmotionsAngerFearDisgustSadnessFinancial ValuationsExperimentSelling ConditionChoice Condition

Przejdź do...

0:00

Overview

1:32

Experimental Design

5:26

Running the Experiment

7:48

Representative Results

8:58

Applications

9:52

Summary

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