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Emotional balance and probability weighting
Authors:Narat Charupat  Richard Deaves  Travis Derouin  Marcelo Klotzle  Peter Miu
Affiliation:1. McMaster University, Hamilton, ON, Canada
2. Wikihow, Washington, DC, USA
3. PUC—Rio, Rio de Janeiro, Brazil
Abstract:We find suggestive evidence that emotional balance has an impact on probability weighting incremental to demographic controls. Specifically, low negative affectivity (implying high emotional balance) tends to be a characteristic of those whose probability weighting functions exhibit lower curvature and more neutral elevation. In other words, emotional balance seems to push people in the direction of normative expected utility theory.
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