Craving for Money? Evidence from the Laboratory and the Field

Posted: 1 Apr 2020 Last revised: 13 Sep 2022

See all articles by Elise Payzan-LeNestour

Elise Payzan-LeNestour

University of New South Wales; Financial Research Network (FIRN)

James Doran

University of New South Wales

Date Written: September 13, 2022

Abstract

We propose a new model of choice under repeated exposure to gambles. In it, the agent may come to choose a negative expected value, negative skew gamble, due to a behavioral bias that has a neurobiological foundation. We document evidence for the model using a combination of laboratory and field data. The findings bring novel insights into the motivations underlying investor decisions, the issue of problem gambling in recreational gamblers, and the topic of self-control.

Keywords: Decision making under uncertainty, self-control, craving, option pricing, neurofinance

JEL Classification: C91, D87, G41

Suggested Citation

Payzan-LeNestour, Elise and Doran, James, Craving for Money? Evidence from the Laboratory and the Field (September 13, 2022). Available at SSRN: https://ssrn.com/abstract=3545804 or http://dx.doi.org/10.2139/ssrn.3545804

Elise Payzan-LeNestour (Contact Author)

University of New South Wales ( email )

Australian School of Business
Sydney, NSW 2052
Australia

HOME PAGE: http://www.elisepayzan.com/

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

James Doran

University of New South Wales ( email )

College Rd
Sydney, NSW 2052
Australia

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