The Emotional Information Processing System is Risk Averse: Ego-Depletion and Investment Behavior

30 Pages Posted: 3 Nov 2008

See all articles by Bart De Langhe

Bart De Langhe

University of Colorado at Boulder

Steven Sweldens

INSEAD - Marketing

Stijn M. J. van Osselaer

Cornell University - Samuel Curtis Johnson Graduate School of Management

Mirjam A. Tuk

Imperial College Business School

Date Written: October 20, 2008

Abstract

Two experiments show that a shortage of self-regulatory resources results in more risk aversion in mixed-gamble (gain/loss) situations. The findings support a dual process view that distinguishes between a rational and an affective information processing system, in which self-regulatory resources are the necessary fuel for the rational system. Depending on the expected values of risk seeking versus risk averse behavior, ego depletion can have negative (experiment 1) as well as positive (experiment 2) consequences for investment behavior.

Keywords: emotional information processing system, risk averse, ego depletion, investment behavior

JEL Classification: C44, M31, M, G11, G14

Suggested Citation

Langhe, Bart De and Sweldens, Steven and van Osselaer, Stijn M. J. and Tuk, Mirjam A., The Emotional Information Processing System is Risk Averse: Ego-Depletion and Investment Behavior (October 20, 2008). ERIM Report Series Reference No. ERS-2008-064-MKT, Available at SSRN: https://ssrn.com/abstract=1292183

Bart De Langhe (Contact Author)

University of Colorado at Boulder ( email )

1070 Edinboro Drive
Boulder, CO 80309
United States

Steven Sweldens

INSEAD - Marketing ( email )

Boulevard de Constance
Fontainebleau, 77305
France

Stijn M. J. Van Osselaer

Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )

Ithaca, NY 14853
United States

Mirjam A. Tuk

Imperial College Business School ( email )

Tanaka Building
South Kensington Campus
London SW7 2AZ, DC SW7 2AZ
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
293
Abstract Views
1,750
rank
117,721
PlumX Metrics