Arbeitspapier
Emotions-at-risk: An experimental investigation into emotions, option prices and risk perception
This paper experimentally investigates how emotions are associated with option prices and risk perception. Using a binary lottery, we find evidence that the emotion 'surprise' plays a significant role in the negative correlation between lottery returns and estimates of the price of a put option. Our findings shed new light on various existing theories on emotions and affect. We find gratitude, admiration, and joy to be positively associated with risk perception, although the affect heuristic predicts a negative association. In contrast with the predictions of the appraisal tendency framework (ATF), we document a negative correlation between option price and surprise for lottery winners. Finally, the results show that the option price is not associated with risk perception as commonly used in psychology.
- Sprache
-
Englisch
- Erschienen in
-
Series: CFS Working Paper Series ; No. 495
- Klassifikation
-
Wirtschaft
Criteria for Decision-Making under Risk and Uncertainty
Financial Forecasting and Simulation
- Thema
-
risk perception
emotions
affect heuristic
option prices
experiment
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Bosman, Ronald
Kräussl, Roman
van Galen, Thomas
- Ereignis
-
Veröffentlichung
- (wer)
-
Goethe University Frankfurt, Center for Financial Studies (CFS)
- (wo)
-
Frankfurt a. M.
- (wann)
-
2014
- Handle
- URN
-
urn:nbn:de:hebis:30:3-356099
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Bosman, Ronald
- Kräussl, Roman
- van Galen, Thomas
- Goethe University Frankfurt, Center for Financial Studies (CFS)
Entstanden
- 2014
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