Risk Preferences and the Role of Emotions

There is a large volume of research showing that emotions have relevant effects on decision-making. We contribute to this literature by experimentally investigating the impact of four specific emotional states - joviality, sadness, fear, and anger - on risk attitudes. In order to do so, we fit two models of behavior under risk: the Expected Utility model (EU) and the Rank Dependent Expected Utility model (RDEU), assuming several functional forms of the weighting function. Our results indicate that all emotional states mitigate risk aversion. Furthermore, we show that there are some differences across gender and participants' experience in laboratory experiments.

How Vladimir Putin’s Divorce Story Was Constructed and Received, or When the President Divorced His Wife and Married the Country Instead

When the Russian president divorced his wife in 2013, social media crowds coined plenty of the Internet memes to interpret the news. Anastasia Denisova, Doctoral Researcher at CAMRI, examined the framing of the story in traditional and new media and came to the surprising findings.