Chapter

Psychological influences on economic choice: Pavlovian cuing and emotional regulation

Colin F. Camerer

in Decision Making, Affect, and Learning

Published in print March 2011 | ISBN: 9780199600434
Published online May 2011 | e-ISBN: 9780191725623 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199600434.003.0002

Series: Attention and Performance

Psychological influences on economic choice: Pavlovian cuing and emotional regulation

Show Summary Details

Preview

The economic theory of choice has proved to be useful in explaining aggregate choices and guiding policy using just three moving parts: stable preferences, information, and constraints. Cognitive science and neuroscience can supplement this model by showing how attention, emotion, cognitive difficulty, and other variables, also influence choices. This chapter describes two ‘case studies’ of these effects. The first part showed that the way familiar choices are described or presented can dramatically influence bidding prices. The second part shows that emotional regulation of the fear of loss could lower the behavioural tendency toward overweighting losses compared to gains (loss-aversion), and is also manifested in autonomic responses to feedback about actual losses when chosen gambles are immediately played for money.

Keywords: economic choice theory; decision making; stable preferences; information; constraints; emotional regulation

Chapter.  10313 words.  Illustrated.

Subjects: Cognitive Psychology

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.