The Impact of Positive and Negative Affect and Issue Framing on Issue Interpretation and Risk Taking

27 Pages Posted: 12 Oct 2013 Last revised: 16 Oct 2013

See all articles by Vikas Mittal

Vikas Mittal

Rice University

William T. Ross

Pennsylvania State University - Department of Marketing

Date Written: December 1, 1998

Abstract

Two studies examined the influence of transient affective states and issue framing on issue interpretation and risk taking within the context of strategic decision making. In Study 1, participants in whom transient positive or negative affective states were induced by reading a short story showed systematic differences in issue interpretation and risk taking in a strategic decision making context. Compared to negative mood participants, those in a positive mood were more likely to interpret the strategic issue as an opportunity and displayed lower levels of risk taking.

Study 2 replicated and extended these results by crossing affective states with threat and opportunity frames. Results showed that framing an issue (as a threat or an opportunity) had a stronger impact on issue interpretation among negative affect participants than among positive affect participants. Affective states also moderated the impact of issue framing on risk taking: the effect of framing on risk-taking was stronger under negative rather than positive affect. These results are interpreted via information-processing and motivational effects of affect on a decision maker.

Keywords: Affect, Issue Framing, Issue Interpretation, and Risk Taking

Suggested Citation

Mittal, Vikas and Ross, William T., The Impact of Positive and Negative Affect and Issue Framing on Issue Interpretation and Risk Taking (December 1, 1998). Organizational Behavior and Human Decision Processes, Vol. 76, No. 3, December 1998, pp. 298-324, Available at SSRN: https://ssrn.com/abstract=2338720

Vikas Mittal (Contact Author)

Rice University ( email )

6100 South Main Street
250 McNair
Houston, TX 77005-1892
United States

William T. Ross

Pennsylvania State University - Department of Marketing ( email )

University Park, PA 16802-3306
United States

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