Staner, Clément
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Abstract
Understanding how emotions stemming from negative outcomes affect investment decisions is critical for studying choice under uncertainty. I build a framework to study how past and anticipated negative emotions interact with an agent’s preference and environment to influence her investment level. I show that the dynamic effect of emotions on decisions is more complicated than previously thought and requires a careful analysis of the decision environment to build correct predictions. Using baseball data, I show how to use the theoretical framework empirically to investigate the dynamic impact of emotion and find that it leads to suboptimal pitch velocity decisions.
| Document type: | Working paper |
|---|---|
| Series Name: | AWI Discussion Paper Series |
| Volume: | 0757 |
| Place of Publication: | Heidelberg |
| Date Deposited: | 20 Jan 2025 10:42 |
| Date: | 2024 |
| Number of Pages: | 72 |
| Faculties / Institutes: | The Faculty of Economics and Social Studies > Alfred-Weber-Institut for Economics |
| DDC-classification: | 330 Economics |
| Series: | Discussion Paper Series / University of Heidelberg, Department of Economics |
