Understanding Risky Behavior: The Influence of Cognitive ...

How Do Cognitions and Emotions Influence Risky Behavior Articles ClaudiaRepetto CatholicUniversityoftheSacredHeart,Italy TetianaHill UniversityofHertfordshire,UnitedKingdom KatarzynaSekścińska UniversityofWarsaw,Poland Theeditorandreviewers'affiliationsarethelatestprovidedontheirLoopresearchprofilesandmaynotreflecttheirsituationatthetimeofreview. Abstract HowDoCognitionsandEmotionsInfluenceRiskyBehavior HormonalPredictorsofRisk-Taking ChoicePreferencesandRegulatoryPolicy Summary AuthorContributions ConflictofInterestStatement References SuggestaResearchTopic> DownloadArticle DownloadPDF ReadCube EPUB XML(NLM) Supplementary Material Exportcitation EndNote ReferenceManager SimpleTEXTfile BibTex totalviews ViewArticleImpact SuggestaResearchTopic> SHAREON OpenSupplementalData REVIEWarticle Front.Psychol.,01February2017 |https://doi.org/10.3389/fpsyg.2017.00102 UnderstandingRiskyBehavior:TheInfluenceofCognitive,EmotionalandHormonalFactorsonDecision-MakingunderRisk PetkoKusev1*,HarryPurser2,RenataHeilman3,AlexJ.Cooke1,PaulVanSchaik4,VictoriaBaranova5,RoseMartin1andPeterAyton6 1DepartmentofPsychology,KingstonUniversityLondon,London,UK 2DepartmentofPsychology,NottinghamTrentUniversity,Nottingham,UK 3DepartmentofPsychology,Babeş-BolyaiUniversity,Cluj-Napoca,Romania 4DepartmentofPsychology,TeessideUniversity,Middlesbrough,UK 5DepartmentofPsychology,LomonosovMoscowStateUniversity,Moscow,Russia 6DepartmentofPsychology,CityUniversityofLondon,London,UK Financialriskydecisionsandevaluationspervademanyhumaneverydayactivities.Scientificresearchinsuchdecision-makingtypicallyexplorestheinfluenceofsocio-economicandcognitivefactorsonfinancialbehavior.However,verylittleresearchhasexploredtheholisticinfluenceofcontextual,emotional,andhormonalfactorsonpreferencesforriskininsuranceandinvestmentbehaviors.Accordingly,thegoalofthisreviewarticleistoaddressthecomplexityofindividualriskybehavioranditsunderlyingpsychologicalfactors,aswellastocriticallyexaminecurrentregulationsonfinancialbehavior. HowDoCognitionsandEmotionsInfluenceRiskyBehavior Theoriesofjudgementsanddecision-makinghaveexploredtheinfluenceofeconomicandpsychologicalfactorsonriskybehavior.However,verylittleresearchhasofferedaholisticexplorationoftheinfluenceofcontextual,content,emotional,andhormonalfactorsonpreferencesforriskininsuranceandinvestmentbehaviors.Moreover,inthisreviewarticle,weaimedtoaddressthisgap:weofferedevidencethatthesefactorshaveanindependentinfluenceonpreferenceformationandbehaviorunderrisk.Accordingly,ourreviewhighlightsaneedtoinvestigatehowvariationinthesefactorsproducesvariationindecision-makingunderrisk. UtilitarianExpectationsandDecisionNorms Non-psychological(e.g.,economic)norms,rulesandregulationsaretheexpecteddecisionenvironmentofanyhumanfinancialbehavior.Thus,humandecisionagentsare(i)expectedtoact‘normatively’andmakerationaldecisions,and(ii)evaluateandassessaccordingtonormativecriteriaandutilitarianexpectations.Theseexpectationsarequiteoftenunrealistic,ashumanagency(psychologicalprocessingandbehavior)isassessedandmeasuredwithexternallydesignedeconomictools(e.g.,rationalnormsandrules),whichtypicallydonotincludepsychologicalparameters(e.g.,VonNeumannandMorgenstern,1947).Inthisarticle,wesummarizetheoreticalandempiricalevidencefortheroleofseveralmajorpsychologicalandbiologicalfactorsinfluencinghumanagency,expectednormativeactsandrespectivebehavioraloutcomes. Accordingtonormative(economics)anddescriptive(psychology)theoriesofdecision-making(e.g.,VonNeumannandMorgenstern,1947;TverskyandKahneman,1992)humandecision-makingbehaviorisinformedbycomputationalintegrationsofattributessuchasprobabilitiesandmoney(inadecision-makingcontext).Furthermore,humanagentsengaginginfinancialbehaviors(e.g.,investmentandprotective)aresupposedtoobeynormativeexpectationsbyperformingutilitytrade-offsbetweenthecomputedoutputs(psycho-economicvariablessuchasexpectedvalues)andcertainmonetaryalternatives(seeKahnemanandTversky,1979;TverskyandKahneman,1992).Arationaldecision-makermustchoosethealternativewiththehighestutility,independentofdecision-makingcontext(i.e.,verbalpresentationanddescription).Crucially,normativetheoryimpliesthatanyinformationnotpertinenttocalculatingtheexpectedvaluesoftheoptionsshouldnotinfluencethechoices. RiskyBehavior:TheRoleofDecisionContext,Content,andExperience Inmanystudiesmeasuringhumanriskypreferencestherespondentsaretypicallyinvitedtomakeadecision,whichinvolvesachoicebetweenaprobabilistic/uncertainoption(suchas50%chanceofwinning£4000)andasureoption(certainwinof£2000).Forexample,basedontaskswithhypotheticalmonetarygambles,prospecttheory(TverskyandKahneman,1992)predictsthattwopsychologicalparameters(contextuallossandgainframingandprobabilitylevelsemployedinthegamble)underliehumanriskydecisions.However,recentresearch(Kusevetal.,2009,2012,2016;Vlaevetal.,2010;KusevandvanSchaik,2011)exploredtheroleofmemoryanddecision-makingcontentonriskydecisions.Theseexperiments(Kusevetal.,2009)demonstratedthatthebehavioraleffectsofdecision-makingcontent(typeofutilityandassociatedmemory)areindependentofthatofcontext(e.g.,textualsummariesanddescriptions).Specifically,differencesincontextualdescriptionsofrisk(e.g.,probabilitylevels),monetaryamounts,aswellasaccessibilitytodecision-makingcontent(e.g.,vividnessofeventsinmemoryandactivatedemotions)alterrespondents’riskpreferencesandchoices(e.g.,Slovic,1987;Kusevetal.,2009;seealsoTverskyandKahneman,1992;TverskyandWakker,1995).Furthermore,theoristshavearguedthattheparticularcombinationofcontextualfactors,accessibilitytocontentofdecision-makingutility,tasktypeanddemands,andcomputationalskillstriggeraparticulartypeofbehavioralresponse–normativelyrationalorirrationalriskybehavior(e.g.,KusevandvanSchaik,2011). Itisalsowellestablishedthathumanagentsexperiencedecision-makinginformationratherthanrelyingondescriptionsofdecision-makinginformation.Forexample,riskyeventsintherealworldareexperiencedsequentiallyandoftenwithoutcontextualsummaries(Hertwigetal.,2004;Stewartetal.,2006;Kusevetal.,inpress).However,someriskyeventsarenotexperiencedindividuallyovertime,butarereviewedretrospectivelyandcanalsoimmediatelybeinspectedholisticallyaswithlearningaboutdecisionsfromdescriptions(TverskyandKahneman,1992).Nevertheless,withbothdecision-makingexperiencesagentsrefertoexactlythesameutilitariandatabeforeexpressingtheirriskpreferences.Forexample,researchininsurancedecision-making(Kusevetal.,2009)revealedthatbothdecisionsfromexperienceanddescriptionshaveanindependentinfluenceonriskpreference.People’sexperiencesofeventsleakintodecisionsevenwhennormativeriskinformationisexplicitlyprovided(Kusevetal.,2009).Specifically,respondentsexaggeratedtheriskforaccessibleutilitarianeventsinmemory,indicatingthatvariationindecisioncontentproducesvariationinpreferencesforrisk(Kusevetal.,2009;KusevandvanSchaik,2011). Insurancedecisionsandotherprecautionarybehaviorsareaimedatminimizingoravoidingrisk.Typicallythebenefitsoftakingprecautionaryactionsexemplifyrisk-aversebehavior(HersheyandSchoemaker,1980;Kusevetal.,2009).Health-relatedinsurancebehaviorandprivatelong-termcareinsuranceareofparticularinterestforpolicymakersandthegeneralpublic.Resultsfromarecentsurveyonretirement-planningbehaviorrevealedthatemotionsmightbeimportantpredictorsoflong-termcareinsurancepurchaseintentions(TennysonandKyungYang,2014).Morespecifically,itwasfoundthatrespondentsforwhomfamilyisagreatersourceoflifesatisfactionexpresshigherpurchaseintentions.Theauthorssuggestthatstrongemotionaltieswiththefamilymayleadtoastrongerdesiretopreventburdeningthemwithlong-termcareresponsibilities(TennysonandKyungYang,2014).Respondents’willingnessanddecisionstobuyinsurancearenotinfluencedonlybycognitiveoreconomicfactors,butalsoemotionalfactorscomeintoplayandinthefollowingsectionweprovideempiricalargumentstosupportthisclaim. EmotionsandEmotionRegulationStrategiesinRiskyBehavior Inthissection,wewillfocusontheeffectsofemotionsondecision-making.Namely,someofthemostinfluentialtheoreticalandempiricalperspectivesonthecomplexinteractionsbetweenaffectiveprocessesanddecisionprocesseswillbereviewed,followedbyapplicationsininsuranceandinvestmentdecisions.Inthelastpartofthissection,wewillintroducetheconceptofemotionregulation(ER)andpresentrecentstudieslookingintotheeffectsofthemechanismspeopleusetocontrolemotionsontheirdecisionperformance. Whilemainstreameconomicstendstoemployaxiomaticnormativeassumptionsaboutdecisionagency,researchevidencefrompsychologyandneuroscienceprovidestrongempiricalsupportfortheeffectsofhumanemotionsonriskybehavior(e.g.,BR25;BR9;BR29;BR35;BR37).Themaineffortsinthestudiesofemotion-decisioninteractionareinunderstandingtheroleofemotionsindecision-making(LoewensteinandLerner,2003;Damasio,2005),andtheirneuralunderpinnings(Panksepp,1998). Severalmodelsandtheoriesontheemotion-decisionprocessesinterplayattempttoexplainandpredictthedecisionconsequencesofaffectivefactors.LoewensteinandLerner(2003)presentasystematizationofpossibleinteractionsbetweenemotionsanddecision-making.Oneimportanttheoreticalcontributionsuggestedbytheseauthorsistheclassificationofemotionsasimmediateoranticipatedemotions.Anticipatedemotionsrefertotheemotionspeopleexpecttofeelasaconsequenceofchoosingonedecisionalternativeoveranother.Expectedutilitytheoryorotherconsequentialistmodelsassumethatpeoplepredictutilitarianandemotionalconsequences(associatedwithchoiceoptions),andchoosetheoptionthatmaximizespositiveemotionsandminimizesnegativeemotions.Incontrast,immediateemotionsincludeallaffectivestatesthatthedecision-makerhasatthetimeofthedecision.Theseimmediateemotionscanbedirectlyrelatedtothedecisioncontext.Forexample,whenapersonexperiencesanxietyinfrontofariskysituation,orindirectly,whenthedecision-makerfeelshappy,andmoreoptimisticaboutpositiveoutcomesofariskydecision(LoewensteinandLerner,2003).Notably,inthelastfewdecades,economistshavechieflybeenpreoccupiedwithstudyinganticipatedemotions,suchasregretanddisappointment(LoomesandSugden,1982),whereaspsychologistshavefocusedonimmediateemotions(Loewenstein,2000). SincethepublicationofLoewensteinandLerner’s(2003)work,numerousstudieshaveexploredtheeffectsofanticipatedandimmediateemotionsonalargevarietyofdecisiontasksandcontexts.Examplesareinbehavioralrisk-takingandperceptionofrisk(e.g.,Slovicetal.,2004;Damasio,2005;Miuetal.,2008),judgementsofhappinessandoverallsatisfactionwithlife(SchwarzandClore,1983),consumerdecision-makingandtheendowmenteffect(Lerneretal.,2004;Hanetal.,2007),aswellasimplicationsofsocialmoodandindividualdifferencesinstockmarketindexesandotherfinancialoutcomes(Olson,2006).Accordingly,therehasbeenongoingdebateaboutwhichemotioncategoryhasmoreinfluenceonriskybehavior.Forinstance,Schlösseretal.(2013),offeredstrongempiricalsupportfortheclaimthatimmediateemotionspredictriskydecisions,beyondtheeffectsofanticipatedemotionsorthesubjectiveprobabilityattachedtooutcomes.Inasimilarvein,GrableandRoszkowski(2008)showedthatdecision-makersinahappymoodhavehigherlevelsoffinancialrisktolerance,holdingbio-psychosocialandenvironmentalfactorsconstant.Usingamoodinductionprocedure,Stantonetal.(2014)reportedthatahappymoodinductionincreasedrisk-seekingbehaviorcomparedtoneutralmood,whereasasadmoodinductionproceduredidnotinducebehavioraldifferencesincomparisontoneutralmood. However,theexistingliteratureprovidesamixedimageregardingtheeffectsofpositiveandnegativemoodsoraffectivestates.Forinstance,positiveemotionalstatesareassociatedwithincreasedproblemsolvingcapacity(Isen,1984,1987,1993),rememberingpositiveevents(Bower,1981),increasedrisk-taking(KahnandIsen,1993),andoptimismtowardthepossibilityoflivingpositiveeventsinthefuture(WrightandBower,1992;Nygrenetal.,1996).Otherstudieshavelinkedpositivemoodoremotionalstatestoreducedrisk-taking.Forinstance,IsenandPatrick(1983)putforwardthe“moodmaintenancetheory”whichstatesthatpeopleinhappymoodsaremorereluctanttotakeriskssincetheydon’twanttounderminetheirpositiveemotionalstate(Isenetal.,1988). Ontheotherhand,negativeaffectivestateswereshowntopredisposeindividualstowardrememberingnegativepastevents(Bower,1981)aswellasoverestimatingthechancesofanegativeeventinthefuture(JohnsonandTversky,1983).Consensusinthescientificliteratureregardingtheeffectsofnegativeemotionsonrisk-takingisalsolacking.Whereassomepapersdocumentedthefactthatexperimentallyinducednegativeemotionsaswellasanxiousanddepressivestatesleadtomorerisk-aversepreferences(LeithandBaumeister,1996;YuenandLee,2003;Miuetal.,2008;Heilmanetal.,2010),otherauthorsprovideempiricalevidencesupportingapositiverelationbetweennegativeemotionsandrisk-taking(MittalandRoss,1998;RaghunathanandPham,1999;Bruyneeletal.,2009). Asreviewedintheprecedingparagraphs,mosttheoriesandempiricalstudiesofaffectiveinfluencesondecisionalprocesseshavecontrastedtheeffectsofpositiveemotionsondecision-makingwiththeeffectsofnegativeemotions.Thesestudiesstartedfromtheassumptionthatallpositiveemotionsandallnegativeemotions,respectively,shouldhavesimilarimpactondecision-makingingeneral,orrisk-taking,inparticular.However,aspreviouslyreviewed,behavioraldataregardingaffectiveinfluencesonrisk-takingarelessconsistent.LernerandKeltner(2000,2001)proposedthe“appraisaltendencyhypothesis”toaddressthisissue.Theirtheoryassertsthateachemotionisassociatedwithaspecificappraisaldimension,which,inturn,willdeterminetheinfluenceofspecificemotionsonjudgementsanddecisions.Forinstance,basedonLernerandKeltner’s(2000,2001)results,inducedfearwasassociatedwithpessimisticjudgementsoffutureeventsandrisk-aversechoices,whereasinducedangerwasassociatedwithmoreoptimisticjudgementsandamorerisk-seekingbehavioralpattern.Inconclusion,appraisalsofcertaintyandcontrolmoderateand/ormediateemotionaleffectsonrisk-taking.Takingappraisaldimensionsofsame-valenceemotionsintoaccountmighteliminatesomeoftheinconsistencyinpreviouslyreportedresults. Lookingspecificallyatfinancialdecision-making,thereareseveralstudiesthatunravelthecomplexdynamicsbetweenemotionsandriskydecisions.VanWindenetal.(2011)observedthatthetimingoftheresolutionofrisk(thetimethatpassesbetweentheriskydecisionandtheconsequencesofthatdecision)andanticipatoryemotionspredictedinvestmentbehavior.Delayingtheresolution,fornegativeanticipatoryemotions(withhigh-probabilitysuccess)discouragedinvestmentbehavior,whereasdelayingtheresolutionforpositiveanticipatoryemotions(withlow-probabilitysuccess)encouragedtheinvestmentbehavior.Similarly,GambettiandGiusberti(2012)arguedthattraitanxietypredictslow-riskinvestmentdecisions,whereastraitangerisassociatedwithhigherfinancialrisk-taking.Inaddition,experimentalfindings(Guven,2012)revealedthathappierpeoplespendless,andare(i)lesslikelytohavedebts,(ii)moreconcernedaboutthefutureandthussavemoremoney.Likewise,consumerbehaviorisalsoinfluencedbyaffectivestates:astudyconductedbyCryderetal.(2008)showedthatpeopletendtospendmoremoneywhentheyareinasadmood. Withregardtoprecautionarybehavior,experimentalresultshaveshownthatbuyinginsuranceismoreattractiveforitemswithaffectivedescriptionsinducingparticipants’fearoflosingtheitems(Petrovaetal.,2014).Accordingly,asurveystudy,analyzingdatafromUKhouseholdswhoeitherhadexperiencedfloodingorwhowereatriskofflooding,foundthatpeople’sprotectivedecisionswereinfluencedmorebyanticipatednegativeemotions,suchasanxietyorinsecurity,thanbymaterialandfinancialconsiderations(Harries,2012).Ifthedecisiontoinsureagainstfloodingispartlydeterminedbyaffectivereactionsandexperience,moreresearchshouldbecarriedoninthisarea,inordertoinformbetterpublicpolicy. However,thereisevidencethatpeopleemployregulationstrategiesdesignedtoaltertheiremotionalreactions.Underoptimalcircumstances,thesuccessofregulatorystrategyassuresagoodemotionalandsocialfunctioningoftheindividual.Nevertheless,whenERmechanismsaremalfunctioning,theycanincreasetheriskfordevelopingsymptomsofpsychiatricdisorders(Davidsonetal.,2000;Phillips,2003).OneofthemostinfluentialapproachesinthestudyofemotionandERistheprocessmodelofemotions(Gross,1998,2002).ERisaconstructthatsubsumesalltheactionsthatpeopletakeinordertocontrolwhichemotionstheyhave,whentheyhavethemandhowtheyexperienceorexpressthoseemotions(Gross,2002). OneERstrategythathasreceivedparticularattentioniscognitivereappraisal(Gross,2002;OchsnerandGross,2007;Siemeretal.,2007).Thisstrategyimpliesthatchangingthesituation’smeaningaltersitsemotionalimpact.Incontrast,theERstrategyofexpressivesuppressioninvolvesinhibitingongoingemotion-expressivebehaviors(Gross,1998;OchsnerandGross,2007).IndividualdifferencesinhabitualuseofERstrategies(i.e.,cognitivereappraisalandexpressivesuppression)havebeenassociatedwitheffectsonaffective,social,andcognitivefunctioningoftheindividual,physiologicalchangesorevenpsychologicalwell-being(JohnandGross,2004). BecauseoftheeffectivenessofERstrategies,itispossiblethatthesestrategiesmight,infact,moderatetheinvolvementofemotionsinfinancialdecision-making.Mostofthepreviousstudiesonemotionanddecision-makinghavenotcontrolledforER.Therefore,theeffectsofERonfinancialdecision-making,rangingfrom‘coloring’thecontentofthoughtstointerferingwithinformationprocessingandcontext(previouslyattributedtoacuteemotions)mightactuallybemoderatedbyERstrategiessuchascognitivereappraisalorexpressivesuppression.Onlyrecently,however,havescholarsbeguntoinvestigatethesepossibilities,andindoingsotheyhavediscoveredthatERcanindeedmoderatetheeffectsthattaskandincidentalemotionshaveondecisions(Heilman,2006,2014;KahnemanandFrederick,2007;Heilmanetal.,2010;MiuandCrisan,2011;HeilmanandMiclea,2015;Szaszetal.,2016). Psychologistsandeconomistsinvestigatingriskybehaviorshouldbeinterestedinunderstandinghowandinwhatcontextsemotionsinfluenceriskyattitudesandbehavior.Moreover,howcantheseemotionsbeefficientlycontrolled,inordertoreachtheutilitarianbeneficialdecisionoutcomes(e.g.,theoptionwiththehighestutilityoverall)?Althoughmuchhasbeenwrittenaboutneurotransmitters(e.g.,dopamine,NorburyandHusain,2015)inrelationtorisk,acriticalareathat,untilrecently,hasbeenrelativelyneglectedbypsychologistsandeconomistsisthehormonalunderpinningofrisk.Hormonesareparticularlyrelevanttounderstandingcontext-specificity,giventhatsomeoftheirbloodlevelscanvaryaccordingtocontextandsomeoftheireffectsaretransientandshort-lasting(e.g.,ReskoandEik-Nes,1966;Ditzenetal.,2009).Thefollowingsectiongivesanoverviewofthehormonalpredictorsofrisk-taking. HormonalPredictorsofRisk-Taking HormonalCorrelatesofChangesinEnvironment Cortisolisknownasthestresshormone,withhigherlevelsreflectingincreasedamountsofstressandlowerpsychologicalwell-being(e.g.,DickersonandKemeny,2004).DickersonandKemeny(2004)highlightedthattherelationshipsbetweenanumberofputativepsychologicalstressorsandcortisollevelshavenotbeenconsistentlyestablishedintheliterature.Thehypothalamic–pituitary–adrenocortical(HPA)networkistriggeredbythereleaseofcorticotrophin-releasinghormone,inturnstimulatingreleaseofadrenocorticotropinhormonefromtheanteriorpituitary,finallycausingsecretionofcortisolintothebloodstreamfromtheadrenalcortex(e.g.,Sapolskyetal.,2000).TheactivationoftheHPAnetworkhasbeenassociatedwitharangeofpsychologicalchanges,mostnotablystress(e.g.,Selye,1956). Acommonformulationisthattheadrenocorticalsystemisactivatedbycircumstancesinwhichtheindividualispreventedfrompursuinggoals,orwherethosegoalsareotherwisethreatened(CarverandScheier,1999).Withinthisframework,inwhichtheindividual’smotivationiscentral,stressistriggeredbecauseoftheadaptiverelevanceofinterferencewithgoals.Basicthreatstoone’ssurvivalorsafetyelicitreleaseofcortisolfromtheHPAnetwork,servinganadaptivepurpose,giventhatcortisolaugmentsthebioavailabilityofenergyforfightorflight,amongstotherassociatedphysiologicaloptimisationsforsurvival-relevantbehaviors(LovalloandThomas,2000).Althoughsuchself-preservatorythreatsaregenerallyconsideredthearchetypalconditionsthatstimulatecortisolrelease(Sapolskyetal.,2000),theliteratureindicatesthatthreatstoother,morehuman-specific,goalsarealsoassociatedwithraisedlevelsofcortisol. DickersonandKemeny(2004)describethe‘socialself-preservationsystem,’whichfunctionstomonitortheenvironmentforthreatstotheindividual’ssocialstatusorself-esteem.Inlinewiththisidea,theavailabilityofsocialsupporthasbeenassociatedwithareducedlevelofcortisol,asindexedbysalivaryassay(Kirschbaumetal.,1995),andametanalysisbyDickersonandKemeny(2004)indicatedthatcortisolresponsesweremarkedlyaugmentedunderconditionsofsocial-evaluativethreat.Somemorerecentworkhasbroadenedthisresearchareatoincludetheinteractionsofcortisolwithanotherneurotransmitter,oxytocin,whichisassociatedwithtrustandsocialacceptance. Oxytocinaffectstheextenttowhichwefeeltrusttowardothers,withhigherlevelsassociatedwithincreasedtrust(Zaketal.,2004;Kosfeldetal.,2005).Itsreleaseisnotunderdeliberateconsciouscontrol,butisdeterminedbyphysiological,social,andorganizationalconditions(e.g.,Zaketal.,2004).Cortisolsuppressesoxytocin,therebydirectlyreducingfeelingsofinterpersonaltrust,whereasoxytocinreducescortisollevels(Ditzenetal.,2009). Oxytocinisnotjustacorrelateofwell-being,butadirectcauseofit,asshownbyanumberofstudies,involvingintranasaladministrationoftheneuromodulator(e.g.,Ditzenetal.,2009;VanIJzendoornetal.,2012),whichcandemonstrablyreducetheproductionofcortisol(Cardosoetal.,2013).Forexample,astudybyCardosoetal.(2013)demonstratedthatintranasaladministrationofoxytocinattenuatedcortisollevelrelativetoplacebo,althoughitshouldbenotedthatmooditself–thepsychologicalinstantiationofstress–wasnotaffectedbythismanipulation.Inanotherstudy,however,byHeinrichsetal.(2003),acombinationofsocialsupportandintranasaloxytocindemonstrablyloweredsalivarycortisol,butalsobothdecreasedanxietyandincreasedcalmness. Othersteroidhormonesbesidecortisol(estrogenandprogesterone)alsoplayanimportantroleinhumanphysiologythroughoutthelifecourseandcanbereliablymeasuredinsaliva,withcarefulassessmentoftiminginthemenstrualcycle(GavrilovaandLindau,2009).Progesterone,estrogen,andtheadrenal-stresshormones(suchascortisol)areintimatelylinked(EdwardsandMills,2008).Stressknocksthehormonalpatternsoutofrhythmandalsoplacesagreaterdemandonthebody’snutrientreserves,leadingtotirednessandaviciouscircleoffeelinglessabletocopewithstress.Estrogenhasbeenshowntoincreasenon-reproductivebehavioursinmice,includinganxiety,fear,andphysicalactivitylevel(running;MorganandPfaff,2001).Progesteroneplaysanimportantroleinbrainfunctionandisoftencalledthe“feel-goodhormone”becauseofitsmoodenhancingandantidepressanteffects(Wierman,2007). HormonalResponsetoChallenges,Risk,andAmbiguity Cortisolhasrecentlybeenimplicatedinaccountsoffluctuationsinrisk-takingbehavior.CoatesandHerbert(2008)investigatedtheimpactofmarketvolatility–entailingalackofinformationalavailability,orambiguity–onapopulationoftradersintheCityofLondon,findingthatthetradersunderwenta68%increaseinaveragecortisollevelsasmarketvolatilityincreasedoveraperiodofaround1week,inadditiontoamarkedlyhigherlevelofcortisolintheafternoonrelativetothosemeasuredinthemorningswhichwastheresultofanincreaseinsustainedeffortandexpectedchallenge.Suchchronicandacuteraisedcortisollevelsappeartohaveratherdifferenteffectsonthecognitivesystem:acuteincreasesareassociatedwithhighermotivationandmoresensation-seeking(Piazzaetal.,1993;Putmanetal.,2010),whereaschronicraisedcortisollevelhasbeenlinkedtoimpairedexecutive(attention)control(Listonetal.,2009),andappearstocauseorexacerbatebothanxiety(Korte,2001)anddepression(Sapolsky,2000). Kandasamyetal.(2014)hypothesizedthat,ontheabovebasis,acutelyraisedcortisolwould,ifanything,increaserisk-takingbehavior,whereaschronicaugmentationofcortisolwouldleadtoriskaversion.Inadouble-blind,placebo-controlled,crossover,randomizedtrialinvolving36peopleoveran8-dayperiod,participants’riskpreferencesweremeasuredusingaseriesofcomputertasks.Cortisollevelwasbothacutelyandchronicallyraisedbyadministrationofhydrocortisone,apharmaceuticalvariantofcortisol.Inlinewiththeauthors’predictions,financialrisk-takingwasnotreliablyaffectedbyacuteelevationofcortisol,butwasreducedbysustainedelevation.Specifically,withchronicelevationofcortisol,participantsoptedforbetswithlowervarianceandalsolowerexpectedreturns.Thisfindingisillustrativeincallingintoquestionthewidelyadoptedassumptionthattheutilityfunctionsunderlyingriskpreferencesareunchangingthroughtime(e.g.,seeKusevetal.,2009,foradetailedquestioningofsuchassumptions). Inadditiontoinvestigatingtheroleofcortisolintraders,CoatesandHerbert(2008)alsomeasuredleveloftestosterone,anandrogensteroidhormone.Theauthorsfoundthatindividualswithahigheraveragelevelofthehormonetendedtogeneratemoreprofitinfinancialtransactions.Althoughtestosteronelevelhasbeenpositivelyassociatedwithhigh-riskbehaviors,suchasaggressiveviolence,irresponsiblesexualbehavior,anddrugabuse(MiddlemanandDurant,1996),littleresearchhasfocusedoneconomicrisk.Oneofthelargerandbetter-controlledstudieswasconductedbyStantonetal.(2011),involving154participantsperformingtheIowaGamblingTask,usedtoassesspeople’swillingnesstotakerisks.Inthetask,participantsselectcardsfromfourdifferentdecks,whichdifferintermsofthechancesoffinancialrewardsandpenalties.Participantsprovidedsalivasamples,whichwereanalyzedforendogenoustestosteronebyradioimmunoassay.Theresultsindicatedthatindividualswithahighleveloftestosteronetendedtotakegreaterrisksthanthosepeoplewithlowtestosterone,withtherelationshipbetweentestosteroneandrisk-takingsimilarbetweenmenandwomen.Althoughnogenderdifferencesinriskpreference/aversionwerefoundinthisstudy,thebulkofstudieshavetendedtofindthatmenarelessaversetoriskthanwomen. AreviewbyCrosonandGneezy(2009)showedthatmentendtomakeriskierdecisionsinsituationswhereriskisfinancialandameta-analysisof150studiesofgenderdifferencesinriskbehaviorbyByrnesetal.(1999)foundthatmenweresignificantlymorelikelytomakeriskydecisionsinawidevarietyofrisk-relevanttypesofbehavior.Whileendogenoustestosteroneisarguedtoaugmentrisk-takinginatransitorymanner,ithasalsobeenproposedthattestosteronecanhaveamorepermanentimpactonbraindevelopmentinutero(ArnoldandBreedlove,1985).Someresearchershaveusedtheratioofthelengthofthesecondandfourthfingers,knownasthe2D:4Dratio,asamarkerofthelevel,oratleasteffects,ofprenataltestosterone(Manning,2002).Incontrasttotheeffectsofplasmatestosteroneatanyparticularpointintime,thereisaclearcausal,ratherthanmerelycorrelational,interpretationofanylinkbetween2D:4Dratioandfinanciallyriskybehavior,becausethisratioisfixedpriortobirth(McIntyreetal.,2005)andthereforecannotbeinfluencedbyriskybehaviorinadulthood.Coatesetal.(2009)studiedthefinancialperformanceofagroupofmaletradersandfoundthatlower2D:4Dratios,reflectinghigherprenatalexposuretotestosterone,mademoremoneythanthosewithhigherratios.Itshouldbenoted,however,thatgreaterfinancialreturnsarenotnecessarilyindicativeofgreaterrisk-taking(indeed,theoppositecouldbethecase).Garbarinoetal.(2011)investigatedlinksbetween2D:4Dratioandrisk-takingdirectly,inataskinvolvingfinancialdecisions.Theauthorsfoundthatbothmenandwomenwithlower2D:4Dratiostendedtomakeriskierchoices.Furthermore,theyarguedthatthe2D:4Dratiocouldpartiallyaccountforgenderdifferencesinrisk-taking.Intriguingly,thereisalsoevidencethatmen’srisk-takingbehaviorcanbemodulatedbythepresenceofwomen,inawaythatappearstodependonprenatalexposuretotestosterone:VandenBerghandDewitte(2006)foundthatmenwithlower2D:4Dratios,inthepresenceofwomen,becamemoreimpulsivebyselectinglessdesirablefinancialoutcomes.However,thebehaviorofmenwithhigher2D:4Dratioswasnotalteredbyfemalepresence. Oxytocin,outlinedabove,hasalsobeenimplicatedasamodulatorofriskbehavior.Zaketal.(2007),usingadouble-blinddesign,administered34maleswithintranasaloxytocinand34malesweregivenplacebo.Participantsplayedtwogames:theultimatumgameandthedictatorgame,inrandomlyformeddyadsofDecision-maker1orDecision-maker2.Intheultimatumgame,Decision-maker1wasallotted$10andaskedtoofferasplitofthemoneytoDecision-maker2;ifDecision-maker2acceptedtheoffer,themoneywasdividedbetweenthemasperthesplit,butifherejecteditthennomoneywaspaidatall.IntheroleofDecision-maker2,participantswereaskedtostatetheminimumacceptableoffer.Agenerousofferwasdefinedasonethatwasgreaterthanrequiredforacceptance.Inthedictatorgame,thestructurewassimilartotheultimatumgame,butDecision-maker2hadnochoicebuttoaccepttheofferbyDecision-maker1.Thisgamewasincludedtogiveameasureofaltruism(bypeopleintheroleofDecision-maker1),sothatitcouldbedissociatedfromgenerosityintheultimatumgame.Participantsgivenoxytocinwere80%moregenerousthanthosegivenplacebointheultimatumgame,butwerenomorealtruisticinthedictatorgame.Theauthorsnotethatthisincreaseingenerosityresembledanincreaseriskaversion:peopleintheroleofDecision-maker1mayhavemademoregenerousofferstoreducethechanceofbeingrejectedandendingupwithnothing. ChoicePreferencesandRegulatoryPolicy Normativemodelsofdecision-makingsuchasexpectedutilitytheorysuggestthatdecision-makersshouldmakechoicesinordertomaximizeutility(VonNeumannandMorgenstern,1947).Theassumptionthatdecision-makersfollowrationalnormativeassumptions,however,hasbeenrefutedfrequentlyintheliterature(TverskyandKahneman,1992).Decision-makershavebeenshown,instead,todivertfromutilitymaximizationduetotheinfluencesfromdecisioncontext,content,experienceandemotions(KahnemanandTversky,1979;Hertwigetal.,2004;Kusevetal.,2009).Moreover,evenonceachoiceismade,decision-makersarestillvulnerable.Forexample,inastudyemployingasleight-of-hand(achoiceparadigmwhichpermitstheexperimentertosurreptitiouslymanipulatetherelationshipbetweenthechoiceandoutcomethatparticipantsexperience),participantsshiftedtheirpoliticalvotingintentions(Halletal.,2013).Respondentswereaskedtostatetheirvotingintention,andintroducedtoapoliticalsurveyofwedgeissuesbetweentwopoliticalcoalitions.Usingsleight-of-hand,votingintentionreplieswerealteredandplacedintheoppositepoliticalcoalitionandparticipantswereinvitedtoreasonaboutthemanipulatedwedgeissues.Remarkably,participantsdetectednomorethan22%ofthemanipulatedreplies. Theneedtoprotectdecision-makersbylegislationisevident.Duetothevulnerabilityandfragilityofchoicepreferences,itisessentialthatconsumersareprotectedbylegislationnotonlyfromexplicitdeceptionbutalsofromdecisionsubtleties,context,andcontent.Inthissection,weshallbrieflyexploreandevaluateaspectsofEuropeanfinanciallegislation,directives,andcommunicationsregardingbothconsumerprotectionandfinancialeducation,inrelationtodecision-makingtheory. TheConsumerCreditDirective(EuropeanParliament,2008)setsouttostandardizeinformationgivenregardingconsumercredits.Onenormativeaspectinthisdocumentisaboutadvertisingregulationsregardingcreditproducts.Theymustcontaininformationabouttheinterestrate,creditamount,andtheannualpercentagerate(APR).WhilstAPRincorporatesadditionalcostsratherthanjustrepresentingtheborrowingrate,thetwoarecloselycomparable,duetothefactthattheyarerepresentedandcommunicatedinpercentages.Itiswellestablishedindecision-makingresearch(e.g.,NewallandLove,2015)thatconsumersexperiencedifficultiescomprehendinginterestinformation,whichisanissuegiventhatcreditproductsaretypicallycommunicatedinpercentages. Similarly,theIntegrationofEuropeanMortgageCreditMarketscommunication(EuropeanParliament,2007)isdesignedtofacilitatean‘increasingproductdiversity’whichisexpectedto‘improveconsumerconfidence.’Thiscommunicationimpliesthatmoredecisionoptionsarebeneficialtotheconsumers–“…havingacompleterangeofmortgageproducts…”(EuropeanParliament,2007).However,theoristshavearguedthatdecision-makerscannotperformmulti-attributedecisionsfromtheavailableoptionsinthecontext(Huberetal.,1982;Simonson,1989).Accordingly,empiricalresearchhasrevealedthatachoicebetweenthreedecisionoptions(e.g.,threedifferentcreditproducts)eachonespacedontwodecisionattributes(e.g.,borrowingrateandAPR)induceddecisionerrors.Forexample,intheirchoice,consumerswillalwaysselectonlybetweentwodecisionoptionsonasingleattribute–choosingtheoptionwiththehighestutilityonthisattribute(andignoringanyotheravailableattributesinthecontext),whichisnotnecessarilytheoptionwiththehighestutilityoverall.Moreover,evendecisionexpertssuchasphysiciansareunabletoovercomecontextualdecisionbiases.RedelmeierandShafir(1995)foundthatadditionalchoiceoptions(numberofmedications)decreasedthelikelihoodofprescribingmedicationandincreasedthelikelihoodofsendingthepatientstohipreplacementsurgery. BoththeDistanceContractsforFinancialServiceslegislation(EuropeanParliament,2002a)andtheEUConsumerRightsDirective(EuropeanParliament,2011)enforceconsumers‘Righttowithdraw,’givingtheconsumers14daysopportunitywindowtowithdrawfromafinancialcontract.Whilstthisappearstoprotectconsumersallowingthemtoevaluatetheirneedsonceinpossessionoftheitem,thereare,however,psychologicalfactorsatplaythatmaybiastheutilityvaluationofaproductonceowned.Forexample,theEndowmentEffectrevealsthatpossessionofanitemincreasesitsperceivedvalue(Kahnemanetal.,1990). Theendowmenteffectisnotonlylimitedpurelytoexperimentalsettings,buthasbeenshowntoaffecttradingonagrandscalewithintheAustralianstockexchange–tradersovervaluedtheirstockportfolios(JohnstoneandFurche,2006).Whilstreturninganitemispossibleandsupportedbythelegislation,itisunlikelytohappenasitsperceivedvaluewillincreaseduetopossession. TheInsuranceBrokeragedirective(EuropeanParliament,2002b)proposesthatonlyfinanciallycapableshouldpeopleactasinsuranceintermediaries.Yet,asoutlinedinthisarticle,eventhosewhomakedecisionsprofessionallyaresusceptibletobehavioralbiases(JohnstoneandFurche,2006). However,somelegislationsaccommodatebehavioralscienceknowledge.TheEUConsumerRightsDirective(EuropeanParliament,2011)aimstoensurethefairtreatmentofconsumerswhenpurchasinggoodsorservices.Thisdirectivebanspre-tickedboxesforadditionalgoodsorservicesonline.Thusprotectingconsumersfromunintendedpurchasesofgoodsandservices.ThedirectiveaddressestheDefaultEffect–atendencyfordecision-makerstoremainwithadefaultoption,ratherthanswitchpreferences(JohnsonandGoldstein,2003). Summary Accordingtonormativetheory,anyinformationthatisnotdirectlyusedtocalculatetheexpectedvaluesofthedecisionoptionsshouldnotinfluencethechoices.However,variablessuchasdifferencesincontextualdescriptionsofrisk,monetaryamounts,and–importantly,aswehaveshown–accessibilitytodecision-makingcontent(e.g.,activatedemotions)changeriskpreferencesandchoices(e.g.,Kusevetal.,2009).Thereisstrongempiricalsupportfortheeffectsofemotionsonriskybehavior(e.g.,Guven,2012).Peoplearenotslavestotheiremotions,however,withemotionalregulationstrategiesassociatedhavingeffectsonaffective,socialandcognitivefunctioning,andpsychologicalwell-being(JohnandGross,2004).Thereareseveralkeyhormonalcorrelatesanddeterminantsofrisk.Cortisol,testosterone,andoxytocinhavebeendemonstratedtobecausallyinvolvedinmodulatingriskybehavior.Chronicsustainedelevationofcortisolservestomakepeoplemoreriskaverse,whereasbothadministeredandnaturallyhightestosteroneincreasesriskybehavior.Oxytocinappearstoincreasegenerosityinamannerresemblingrisk-aversion,butmorestudyisneededtoaddconfidencetothisinterpretation.Theinfluenceofcognitive,emotional,andhormonalfactorsandtheirinteractionondecision-makinghaveimplicationsforregulationtoimprovepeople’sdecision-making. AuthorContributions PKinitiatedthereviewarticle;PK,HP,RH,andACdraftedthemanuscript;PVS,VB,RM,andPAprovidedfeedbackandsuggestions;Allauthorsapprovedthefinalversionofthemanuscriptforsubmission. ConflictofInterestStatement Theauthorsdeclarethattheresearchwasconductedintheabsenceofanycommercialorfinancialrelationshipsthatcouldbeconstruedasapotentialconflictofinterest. References Arnold,A.P.,andBreedlove,S.M.(1985).Organizationalandactivationaleffectsofsexsteroidsonbrainandbehavior:areanalysis.Horm.Behav.19,469–498.doi:10.1016/0018-506X(85)90042-X PubMedAbstract|CrossRefFullText|GoogleScholar Bower,G.H.(1981).Moodandmemory.Am.Psychol.36,129–148.doi:10.1037/0003-066X.36.2.129 CrossRefFullText|GoogleScholar Bruyneel,S.D.,Dewitte,S.,Franses,P.H.,andDekimpe,M.G.(2009).Ifeltlowandmypursefeelslight:Depletingmoodregulationattemptsaffectriskdecisionmaking.J.Behav.Decis.Mak.22,153–170.doi:10.1002/bdm.619 CrossRefFullText|GoogleScholar Byrnes,J.P.,Miller,D.C.,andSchafer,W.D.(1999).Genderdifferenceinrisk-taking:ameta-analysis.Psychol.Bull.125,367–383.doi:10.1037/0033-2909.125.3.367 CrossRefFullText|GoogleScholar Cardoso,C.,Ellenbogen,M.A.,Orlando,M.A.,Bacon,S.L.,andJoober,R.(2013).Intranasaloxytocinattenuatesthecortisolresponsetophysicalstress:adose-responsestudy.Psychoneuroendocrinology38,399–407.doi:10.1016/j.psyneuen.2012.07.013 PubMedAbstract|CrossRefFullText|GoogleScholar Carver,C.S.,andScheier,M.F.(1999).“Stress,coping,andself-regulatoryprocesses,”inHandbookofPersonality:TheoryandResearch,2ndEdn,edsL.A.PervinandO.P.John(NewYork,NY:GuilfordPress),553–575. GoogleScholar Coates,J.M.,Gurnell,M.,andRustichini,A.(2009).Second-to-fourth-digitratiopredictssuccessamonghighfrequencyfinancialtraders.Proc.Natl.Acad.Sci.U.S.A.106,623–628.doi:10.1073/pnas.0810907106 PubMedAbstract|CrossRefFullText|GoogleScholar Coates,J.M.,andHerbert,J.(2008).Endogenoussteroidsandfinancialrisk-takingonaLondontradingfloor.Proc.Natl.Acad.Sci.USA105,6167–6172.doi:10.1073/pnas.0704025105 PubMedAbstract|CrossRefFullText|GoogleScholar Crisan,L.G.,Pană,S.,Vulturar,R.,Heilman,R.M.,Szekely,R.,Drugă,B.,etal.(2009).Geneticcontributionsoftheserotonintransportertosociallearningoffearandeconomicdecisionmaking.Soc.Cogn.Affect.Neurosci.4,399–408.doi:10.1093/scan/nsp019 PubMedAbstract|CrossRefFullText|GoogleScholar Croson,R.,andGneezy,U.(2009).Genderdifferencesinpreferences.J.Econ.Lit.47,448–474.doi:10.1257/jel.47.2.448 CrossRefFullText|GoogleScholar Cryder,C.,Lerner,J.,Gross,J.,andDahl,R.(2008).Miseryisnotmiserlysadandself-focusedindividualsspendmore.Psychol.Sci.19,525–530.doi:10.1111/j.1467-9280.2008.02118.x PubMedAbstract|CrossRefFullText|GoogleScholar Damasio,A.(2005).Descartes’Error:Emotion,Reason,andtheHumanBrain.NewYork,NY:Penguin. GoogleScholar Davidson,R.,Jackson,D.,andKalin,N.(2000).Emotion,plasticity,context,andregulation:perspectivesfromaffectiveneuroscience.Psychol.Bull.126,890–909.doi:10.1037/0033-2909.126.6.890 PubMedAbstract|CrossRefFullText|GoogleScholar Dickerson,S.,andKemeny,M.(2004).Acutestressorsandcortisolresponses:atheoreticalintegrationandsynthesisoflaboratoryresearch.Psychol.Bull.130,355–391.doi:10.1037/0033-2909.130.3.355 PubMedAbstract|CrossRefFullText|GoogleScholar Ditzen,B.,Schaer,M.,Gabriel,B.,Bodenmann,G.,Ehlert,U.,andHeinrichs,M.(2009).Intranasaloxytocinincreasespositivecommunicationandreducescortisollevelsduringcoupleconflict.Biol.Psychiatry65,725–727.doi:10.1016/j.biopsych.2008.10.011 PubMedAbstract|CrossRefFullText|GoogleScholar Edwards,K.M.,andMills,P.J.(2008).Effectsofestrogenversusestrogenandprogesteroneoncortisolandinterleukin-6.Maturitas61,330–333.doi:10.1016/j.maturitas.2008.09.024 PubMedAbstract|CrossRefFullText|GoogleScholar EuropeanParliament(2002a).DistanceContractsforFinancialServices.Availableat:http://eur-lex.europa.eu/legalcontent/EN/TXT/HTML/?uri=CELEX:32002L0065&from=EN GoogleScholar EuropeanParliament(2002b).InsuranceBrokerage.Availableat:http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32002L0092&from=EN EuropeanParliament(2007).IntegrationofEuropeanMortgageCreditMarkets.Availableat:http://eur-lex.europa.eu/procedure/EN/196563 GoogleScholar EuropeanParliament(2008).ConsumerCreditDirectiveAvailableat:http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=URISERV\%3Aco0001 EuropeanParliament(2011).ConsumerRightsDirective.Availableat:http://ec.europa.eu/consumers/consumer_rights/rights-contracts/directive/index_en.htm Gambetti,E.,andGiusberti,F.(2012).Theeffectofangerandanxietytraitsoninvestmentdecisions.J.Econ.Psychol.33,1059–1069.doi:10.1016/j.joep.2012.07.001 CrossRefFullText|GoogleScholar Garbarino,E.,Slonim,R.,andSydnor,J.(2011).Digitratios(2D:4D)aspredictorsofriskydecisionmakingforbothsexes.J.RiskUncertain.42,1–26.doi:10.1007/s11166-010-9109-6 CrossRefFullText|GoogleScholar Gavrilova,N.,andLindau,S.(2009).Salivarysexhormonemeasurementinanational,population-basedstudyofolderadults.J.Gerontol.BPsychol.Sci.Soc.Sci.64,94–105.doi:10.1093/geronb/gbn028 PubMedAbstract|CrossRefFullText|GoogleScholar Gilbert,D.(2007).StumblingonHappiness.NewYork,NY:Knopf. GoogleScholar Grable,J.,andRoszkowski,M.(2008).Theinfluenceofmoodonthewillingnesstotakefinancialrisks.J.RiskRes.11,905–923.doi:10.1080/13669870802090390 PubMedAbstract|CrossRefFullText|GoogleScholar Gross,J.(1998).Antecedent-andresponse-focusedemotionregulation:divergentconsequencesforexperience,expression,andphysiology.J.Pers.Soc.Psychol.74,224–237.doi:10.1037/0022-3514.74.1.224 PubMedAbstract|CrossRefFullText|GoogleScholar Gross,J.(2002).Emotionregulation:affective,cognitive,andsocialconsequences.Psychophysiology39,281–291.doi:10.1017/S0048577201393198 CrossRefFullText|GoogleScholar Guven,C.(2012).Reversingthequestion:doeshappinessaffectconsumptionandsavingsbehavior?J.Econ.Psychol.33,701–717.doi:10.1016/j.joep.2012.01.002 CrossRefFullText|GoogleScholar Hall,L.,Strandberg,T.,Pärnamets,P.,Lind,A.,Tärning,B.,andJohansson,P.(2013).Howthepollscanbebothspotonanddeadwrong:usingchoiceblindnesstoshiftpoliticalattitudesandvoterintentions.PLoSONE8:e60554.doi:10.1371/journal.pone.0060554 PubMedAbstract|CrossRefFullText|GoogleScholar Han,S.,Lerner,J.,andKeltner,D.(2007).Feelingsandconsumerdecisionmaking:Theappraisal-tendencyframework.J.Consum.Psychol.17,158–168.doi:10.1016/S1057-7408(07)70023-2 CrossRefFullText|GoogleScholar Harries,T.(2012).Theanticipatedemotionalconsequencesofadaptivebehaviour-impactsonthetake-upofhouseholdflood-protectionprotectivemeasures.Environ.Plan.44,649–668.doi:10.1068/a43612 CrossRefFullText|GoogleScholar Heilman,R.(2006).Theimpactofemotionsandindividualdifferencesuponeconomicdecision-making:areviewofexperimentalliterature.Cogn.BrainBehav.10,439–459. GoogleScholar Heilman,R.,Crisan,L.,Houser,D.,Miclea,M.,andMiu,A.(2010).Emotionregulationanddecisionmakingunderriskanduncertainty.Emotion10,257–265.doi:10.1037/a0018489 PubMedAbstract|CrossRefFullText|GoogleScholar Heilman,R.M.(2014).IndividualDifferencesinEmotionandDecision-Making.Implicationsforeconomicpsychology[inRomanian].Cluj-Napoca:RomanianAssociationforCognitiveSciencePublishingHouse(ASCR). Heilman,R.M.,andMiclea,M.(2015).ThecontributionsofdeclarativeknowledgeandemotionregulationintheIowaGamblingTask.Cogn.BrainBehav.19,35–53. GoogleScholar Heilman,R.M.,Miu,A.C.,andHouser,D.(2016).“Emotionregulationandeconomicdecision-making,”inNeuroeconomics,edsM.ReuterandC.Montag(Berlin:Springer),113–131. GoogleScholar Heinrichs,M.,Baumgartner,T.,Kirschbaum,C.,andEhlert,U.(2003).Socialsupportandoxytocininteracttosuppresscortisolandsubjectiveresponsestopsychosocialstress.Biol.Psychiatry54,1389–1398.doi:10.1016/S0006-3223(03)00465-7 PubMedAbstract|CrossRefFullText|GoogleScholar Hershey,J.,andSchoemaker,P.(1980).Risk-takingandproblemcontextinthedomainoflosses:anexpectedutilityanalysis.J.RiskInsur.47,111–132.doi:10.2307/252685 CrossRefFullText|GoogleScholar Hertwig,R.,Barron,G.,Weber,E.U.,andErev,I.(2004).Decisionsfromexperienceandtheeffectofrareeventsinriskychoice.Psychol.Sci.15,534–539.doi:10.1111/j.0956-7976.2004.00715.x PubMedAbstract|CrossRefFullText|GoogleScholar Huber,J.,Payne,J.,andPuto,C.(1982).Addingasymmetricallydominatedalternatives:violationsofregularityandthesimilarityhypothesis.J.Consum.Res.9,90–98.doi:10.1086/208899 CrossRefFullText|GoogleScholar Isen,A.M.(1984).“Theinfluenceofpositiveaffectondecisionmakingandcognitiveorganization,”inAdvancesinConsumerResearch,ed.T.Kinnear(Provo,UT:AssociationforConsumerResearch). GoogleScholar Isen,A.M.(1987).“Positiveaffect,cognitiveprocesses,andsocialbehavior,”inAdvancesinExperimentalSocialPsychology,ed.L.Berkowitz(NewYork,NY:AcademicPress). GoogleScholar Isen,A.M.(1993).“Positiveaffectindecisionmaking,”inHandbookofEmotions,edsM.LewisandJ.M.Haviland(NewYork:GuilfordPress). GoogleScholar Isen,A.M.,Nygren,T.E.,andAshby,F.G.(1988).Influenceofpositiveaffectonthesubjectiveutilityofgainsandlosses:itisjustnotworththerisk.J.Pers.Soc.Psychol.55,710–717.doi:10.1037/0022-3514.55.5.710 PubMedAbstract|CrossRefFullText|GoogleScholar Isen,A.M.,andPatrick,R.(1983).Theeffectofpositivefeelingsonrisk-taking:whenthechipsaredown.Organ.Behav.Hum.Perform.31,194–202.doi:10.1016/0030-5073(83)90120-4 CrossRefFullText|GoogleScholar John,O.,andGross,J.(2004).Healthyandunhealthyemotionregulation:personalityprocesses,individualdifferences,andlifespandevelopment.J.Pers.72,1301–1334.doi:10.1111/j.1467-6494.2004.00298.x PubMedAbstract|CrossRefFullText|GoogleScholar Johnson,E.,andGoldstein,D.(2003).Dodefaultssavelives?Science302,1338–1339.doi:10.1126/science.1091721 PubMedAbstract|CrossRefFullText|GoogleScholar Johnson,E.,andTversky,A.(1983).Affect,generalization,andtheperceptionofrisk.J.Pers.Soc.Psychol.45,20–31.doi:10.1037/0022-3514.45.1.20 CrossRefFullText|GoogleScholar Johnstone,D.,andFurche,A.(2006).EvidenceoftheendowmenteffectontheAustralianstockexchange.J.Behav.Finance7,145–154.doi:10.1207/s15427579jpfm0703_3 CrossRefFullText Kahn,B.E.,andIsen,A.M.(1993).Theinfluenceofpositiveaffectonvarietyseekingamongsafe,enjoyableproducts.J.Consum.Res.20,257–270.doi:10.1086/209347 CrossRefFullText|GoogleScholar Kahneman,D.,andFrederick,S.(2007).Framesandbrains:elicitationandcontrolofresponsetendencies.TrendsCogn.Sci.11,45–46.doi:10.1016/j.tics.2006.11.007 PubMedAbstract|CrossRefFullText|GoogleScholar Kahneman,D.,Knetsch,J.,andThaler,R.(1990).Experimentaltestsoftheendowmenteffectandthecoasetheorem.J.Polit.Econ.98,1325–1348.doi:10.1086/261737 CrossRefFullText|GoogleScholar Kahneman,D.,andTversky,A.(1979).Prospecttheory:ananalysisofdecisionunderrisk.Econometrica47,263–291.doi:10.1007/s11336-014-9425-x PubMedAbstract|CrossRefFullText|GoogleScholar Kandasamy,N.,Hardy,B.,Page,L.,Schaffner,M.,Graggaber,J.,Powlson,A.S.,etal.(2014).Cortisolshiftsfinancialriskpreferences.Proc.Natl.Acad.Sci.U.S.A.111,3608–3613.doi:10.1073/pnas.1317908111 PubMedAbstract|CrossRefFullText|GoogleScholar Kirschbaum,C.,Klauer,T.,Filipp,S.,andHellhammer,D.(1995).Sex-specificeffectsofsocialsupportoncortisolandsubjectiveresponsestoacutepsychologicalstress.Psychosom.Med.57,23–31.doi:10.1097/00006842-199501000-00004 PubMedAbstract|CrossRefFullText|GoogleScholar Korte,S.(2001).Corticosteroidsinrelationtofear,anxietyandpsychopathology.Neurosci.Biobehav.Rev.25,117–142.doi:10.1016/S0149-7634(01)00002-1 CrossRefFullText|GoogleScholar Kosfeld,M.,Heinrichs,M.,Zak,P.J.,Fischbacher,U.,andFehr,E.(2005).Oxytocinincreasestrustinhumans.Nature435,673–676.doi:10.1038/nature03701 PubMedAbstract|CrossRefFullText|GoogleScholar Kusev,P.,andvanSchaik,P.(2011).Preferencesunderrisk:content-dependentbehaviorandpsychologicalprocessing.Front.Psychol.2:269.doi:10.3389/fpsyg.2011.00269 PubMedAbstract|CrossRefFullText|GoogleScholar Kusev,P.,vanSchaik,P.,andAldrovandi,S.(2012).Preferencesinducedbyaccessibility:evidencefrompriming.J.Neurosci.Psychol.Econ.5,250–258.doi:10.1037/a0030289 CrossRefFullText|GoogleScholar Kusev,P.,vanSchaik,P.,Alzahrani,S.,Lonigro,S.,andPurser,H.(2016).Judgingthemoralityofutilitarianactions:howpoorutilitarianaccessibilitymakesjudgesirrational.Psychon.Bull.Rev.23,1961–1967.doi:10.3758/s13423-016-1029-2 PubMedAbstract|CrossRefFullText|GoogleScholar Kusev,P.,vanSchaik,P.,Ayton,P.,Dent,J.,andChater,N.(2009).Exaggeratedrisk:prospecttheoryandprobabilityweightinginriskychoice.J.Exp.Psychol.35,1487–1505.doi:10.1037/a0017039 PubMedAbstract|CrossRefFullText|GoogleScholar Kusev,P.,vanSchaik,P.,Tsaneva-Atanasova,K.,Juliusson,A.,andChater,N.(inpress).Adaptiveanchoringmodel:howstaticanddynamicpresentationoftimeseriesinfluencejudgmentsandpredictions.Cogn.Sci. Leith,K.P.,andBaumeister,R.F.(1996).Whydobadmoodsincreaseself-defeatingbehavior?Emotion,risktasking,andself-regulation.J.Pers.Soc.Psychol.71,1250–1267. PubMedAbstract|GoogleScholar Lerner,J.,Small,D.,andLoewenstein,G.(2004).Heartstringsandpursestringscarryovereffectsofemotionsoneconomicdecisions.Psychol.Sci.15,337–341.doi:10.1111/j.0956-7976.2004.00679.x PubMedAbstract|CrossRefFullText|GoogleScholar Lerner,J.S.,andKeltner,D.(2000).Beyondvalence:towardamodelofemotion-specificinfluencesonjudgmentandchoice.Cogn.Emot.14,473–493.doi:10.1080/026999300402763 CrossRefFullText|GoogleScholar Lerner,J.S.,andKeltner,D.(2001).Fear,anger,andrisk.J.Pers.Soc.Psychol.81,146–159.doi:10.1037/0022-3514.81.1.146 CrossRefFullText|GoogleScholar Liston,C.,McEwen,B.S.,andCasey,B.J.(2009).Psychosocialstressreversiblydisruptsprefrontalprocessingandattentionalcontrol.Proc.Natl.Acad.Sci.U.S.A.106,912–917.doi:10.1073/pnas.0807041106 PubMedAbstract|CrossRefFullText|GoogleScholar Loewenstein,G.(2000).Emotionsineconomictheoryandeconomicbehavior.Am.Econ.Rev.90,426–432.doi:10.1257/aer.90.2.426 CrossRefFullText|GoogleScholar Loewenstein,G.,andLerner,J.(2003).“Theroleofaffectindecisionmaking,”inHandbookofAffectiveScience,edsR.Davidson,K.Sherer,andH.Goldsmith(Oxford:OxfordUniversityPress),619–642. GoogleScholar Loomes,G.,andSugden,R.(1982).Regrettheory:analternativetheoryofrationalchoiceunderuncertainty.Econ.J.92,805–824.doi:10.2307/2232669 CrossRefFullText|GoogleScholar Lovallo,W.,andThomas,T.(2000).“Stresshormonesinpsycho-physiologicalresearch:emotional,behavioralandcognitiveimplications,”inHandbookofPsychophysiology,edsJ.T.Cacioppo,L.G.Tassinary,andG.G.Berntson(Cambridge:CambridgeUniversityPress),342–367. Manning,J.T.(2002).DigitRatio:APointertoFertility,Behavior,andHealth.NewBrunswick,NY:RutgersUniversityPress. GoogleScholar McIntyre,M.H.,Ellison,P.T.,Lieberman,D.E.,Demerath,E.,andTowne,B.(2005).Thedevelopmentofsexdifferencesindigitalformulafrominfancytothefelslongitudinalstudy.Proc.R.Soc.272,1473–1479.doi:10.1098/rspb.2005.3100 PubMedAbstract|CrossRefFullText|GoogleScholar Middleman,A.B.,andDurant,R.H.(1996).Anabolicsteroiduseandassociatedhealthriskbehaviours.SportsMed.21,251–255.doi:10.2165/00007256-199621040-00001 CrossRefFullText|GoogleScholar Mittal,V.,andRoss,W.T.(1998).Theimpactofpositiveandnegativeaffectandissueframingonissueinterpretationandrisktaking.Organ.Behav.Hum.Decis.Process.76,298–324.doi:10.1006/obhd.1998.2808 PubMedAbstract|CrossRefFullText|GoogleScholar Miu,A.,andCrisan,L.(2011).Cognitivereappraisalreducesthesusceptibilitytotheframingeffectineconomicdecisionmaking.Pers.Individ.Diff.51,478–482.doi:10.1016/j.paid.2011.04.020 CrossRefFullText|GoogleScholar Miu,A.,Heilman,R.,andHouser,D.(2008).Anxietyimpairsdecision-making:psychophysiologicalevidencefromanIowaGamblingTask.Biol.Psychol.77,353–358.doi:10.1016/j.biopsycho.2007.11.010 PubMedAbstract|CrossRefFullText|GoogleScholar Morgan,M.,andPfaff,D.(2001).Effectsofestrogenonactivityandfear-relatedbehaviorsinmice.Horm.Behav.40,472–482.doi:10.1006/hbeh.2001.1716 PubMedAbstract|CrossRefFullText|GoogleScholar Newall,P.W.S.,andLove,B.C.(2015).Nudginginvestorsbigandsmalltowardbetterdecisions.Decision2,319–326.doi:10.1037/dec0000036 CrossRefFullText|GoogleScholar Norbury,A.,andHusain,M.(2015).Sensation-seeking:dopaminergicmodulationandriskforpsychopathology.Behav.BrainRes.288,79–93.doi:10.1016/j.bbr.2015.04.015 PubMedAbstract|CrossRefFullText|GoogleScholar Nygren,T.E.,Isen,A.M.,Taylor,P.J.,andDulin,J.(1996).Theinfluenceofpositiveaffectonthedecisionruleinrisksituations.Organ.Behav.Hum.Decis.Process.66,59–72.doi:10.1006/obhd.1996.0038 CrossRefFullText|GoogleScholar Ochsner,K.,andGross,J.(2007).“Theneuralarchitectureofemotionregulation,”inHandbookofEmotionRegulation,ed.J,Gross(NewYork,NY:GuilfordPress),87–109. GoogleScholar Olson,K.(2006).Aliteraturereviewofsocialmood.J.Behav.Finance7,193–203.doi:10.1207/s15427579jpfm0704_2 CrossRefFullText|GoogleScholar Panksepp,J.(1998).AffectiveNeuroscience:TheFoundationsofHumanandAnimalEmotions.Oxford:OxfordUniversityPress. GoogleScholar Petrova,D.G.,vanderPligt,J.,andGarcia-Retamero,R.(2014).Feelingthenumbers:ontheinterplaybetweenrisk,affect,andnumeracy.J.Behav.Decis.Mak.27,191–199.doi:10.1002/bdm.1803 CrossRefFullText|GoogleScholar Phillips,M.(2003).Understandingtheneurobiologyofemotionperception:implicationsforpsychiatry.Br.J.Psychiatry182,190–192.doi:10.1192/bjp.182.3.190 CrossRefFullText|GoogleScholar Piazza,P.V.,Deroche,V.,Deminière,J.M.,Maccari,S.,LeMoal,M.,andSimon,H.(1993).Corticosteroneintherangeofstress-inducedlevelspossessesreinforcingproperties:implicationsforsensation-seekingbehaviors.Proc.Natl.Acad.Sci.U.S.A.90,11738–11742.doi:10.1073/pnas.90.24.11738 CrossRefFullText|GoogleScholar Putman,P.,Antypa,N.,Crysovergi,P.,andvanderDoes,W.A.J.(2010).Exogenouscortisolacutelyinfluencesmotivateddecisionmakinginhealthyyoungmen.Psychopharmacology208,257–263.doi:10.1007/s00213-009-1725-y PubMedAbstract|CrossRefFullText|GoogleScholar Raghunathan,R.,andPham,M.T.(1999).Allnegativemoodsarenotequal:motivationalinfluencesofanxietyandsadnessondecisionmaking.Organ.Behav.Hum.Decis.Process.79,56–77.doi:10.1006/obhd.1999.2838 PubMedAbstract|CrossRefFullText|GoogleScholar Redelmeier,D.,andShafir,E.(1995).Medicaldecisionmakinginsituationsthatoffermultiplealternatives.JAMA25,302–305.doi:10.1001/jama.273.4.302 CrossRefFullText|GoogleScholar Resko,J.A.,andEik-Nes,K.B.(1966).Diurnaltestosteronelevelsinperipheralplasmaofhumanmalesubjects.J.Clin.Endocrinol.Metab.26,573–576.doi:10.1210/jcem-26-5-573 PubMedAbstract|CrossRefFullText|GoogleScholar Sapolsky,R.M.(2000).Glucocorticoidsandhippocampalatrophyinneuropsychiatricdisorders.Arch.Gen.Psychiatry57,925–935.doi:10.1001/archpsyc.57.10.925 CrossRefFullText|GoogleScholar Sapolsky,R.M.,Romero,L.M.,andMunck,A.U.(2000).Howdoglucocorticoidsinfluencestressresponses?Integratingpermissive,suppressive,stimulatory,andpreparativeactions.Endocr.Rev.21,55–89.doi:10.1210/edrv.21.1.0389 PubMedAbstract|CrossRefFullText|GoogleScholar Schlösser,T.,Dunning,D.,andFetchenhauer,D.(2013).Whatafeeling:theroleofimmediateandanticipatedemotionsinriskydecisions.J.Behav.Decis.Mak.26,13–30.doi:10.1002/bdm.757 CrossRefFullText|GoogleScholar Schwarz,N.,andClore,G.(1983).Mood,misattribution,andjudgmentsofwell-being:informativeanddirectivefunctionsofaffectivestates.J.Pers.Soc.Psychol.45,513–523.doi:10.1037/0022-3514.45.3.513 CrossRefFullText|GoogleScholar Selye,H.(1956).TheStressofLife.NewYork,NY:McGraw-Hill. GoogleScholar Siemer,M.,Mauss,I.,andGross,J.(2007).Samesituation-differentemotions:howappraisalsshapeouremotions.Emotion7,592–600.doi:10.1037/1528-3542.7.3.592 PubMedAbstract|CrossRefFullText|GoogleScholar Simonson,I.(1989).Choicebasedonreasons:thecaseofattractionandcompromiseeffects.J.Consum.Res.16,158–174.doi:10.1086/209205 CrossRefFullText|GoogleScholar Slovic,P.(1987).Perceptionofrisk.Science236,280–285.doi:10.1126/science.3563507 CrossRefFullText|GoogleScholar Slovic,P.,Finucane,M.,Peters,E.,andMacGregor,D.(2004).Riskasanalysisandriskasfeelings:somethoughtsaboutaffect,reason,risk,andrationality.RiskAnal.24,311–322.doi:10.1111/j.0272-4332.2004.00433.x PubMedAbstract|CrossRefFullText|GoogleScholar Stanton,S.,Reeck,C.,Huettel,S.,andLaBar,K.(2014).Effectsofinducedmoodsoneconomicchoices.Judg.Decis.Mak.9,167–175. GoogleScholar Stanton,S.J.,Liening,S.H.,andSchultheiss,O.C.(2011).Testosteroneispositivelyassociatedwithrisk-takingintheIowaGamblingTask.Horm.Behav.59,252–256.doi:10.1016/j.yhbeh.2010.12.003 PubMedAbstract|CrossRefFullText|GoogleScholar Stewart,N.,Chater,N.,andBrown,G.D.A.(2006).Decisionbysampling.Cognit.Psychol.53,1–26.doi:10.1016/j.cogpsych.2005.10.003 PubMedAbstract|CrossRefFullText|GoogleScholar Szasz,P.L.,Hofmann,S.G.,Heilman,R.M.,andCurtiss,J.(2016).Effectofregulatingangerandsadnessondecision-making.Cogn.Behav.Ther.45,479–495.doi:10.1080/16506073.2016.1203354 PubMedAbstract|CrossRefFullText|GoogleScholar Tennyson,S.,andKyungYang,H.(2014).Theroleoflifeexperienceinlong-termcareinsurancedecisions.J.Econ.Psychol.42,175–188.doi:10.1016/j.joep.2014.04.002 CrossRefFullText|GoogleScholar Tversky,A.,andKahneman,D.(1992).Advancesinprospecttheory:cumulativerepresentationofuncertainty.J.Riskuncertain.5,297–323.doi:10.1007/BF00122574 PubMedAbstract|CrossRefFullText|GoogleScholar Tversky,A.,andWakker,P.(1995).Riskattitudesanddecisionweights.Econometrica63,1255–1280.doi:10.2307/2171769 CrossRefFullText|GoogleScholar VandenBergh,B.,andDewitte,S.(2006).Digitratio(2D:4D)moderatestheimpactofsexualcuesonmen’sdecisionsinultimatumgames.Proc.R.Soc.BBiol.Sci.273,2091–2095.doi:10.1098/rspb.2006.3550 PubMedAbstract|CrossRefFullText|GoogleScholar VanIJzendoorn,M.H.,Huffmeijer,R.,Alink,L.R.A.,Bakermans-Kranenburg,M.J.,andTops,M.(2012).Theimpactofoxytocinadministrationoncharitabledonatingismoderatedbyexperiencesofparentallove-withdrawal.Front.Psychol.2:258.doi:10.3389/fpsyg.2011.00258 PubMedAbstract|CrossRefFullText|GoogleScholar VanWinden,F.,Krawczyk,M.,andHopfensitz,A.(2011).Investment,resolutionofrisk,andtheroleofaffect.J.Econ.Psychol32,918–939.doi:10.1016/j.joep.2011.07.007 CrossRefFullText|GoogleScholar Vlaev,I.,Kusev,P.,Stewart,N.,Aldrovandi,S.,andChater,N.(2010).Domaineffectsandfinancialriskattitudes.RiskAnal.30,1374–1386.doi:10.1111/j.1539-6924.2010.01433.x PubMedAbstract|CrossRefFullText|GoogleScholar VonNeumann,J.,andMorgenstern,O.(1947).TheoryofGamesandEconomicBehaviour.Princeton,NJ:PrincetonUniversityPress. GoogleScholar Wierman,M.(2007).Sexsteroideffectsattargettissues:mechanismsofaction.Adv.Physiol.Educ.31,26–33.doi:10.1152/advan.00086.2006 PubMedAbstract|CrossRefFullText|GoogleScholar Wright,W.,andBower,G.H.(1992).Moodeffectsonsubjectiveprobabilityassessment.Organ.Behav.Hum.Decis.Process.52,276–291.doi:10.1016/0749-5978(92)90039-A CrossRefFullText|GoogleScholar Yuen,K.S.,andLee,T.M.(2003).Couldmoodstateaffectrisk-takingdecisions?J.Affect.Disord.75,11–18.doi:10.1016/S0165-0327(02)00022-8 CrossRefFullText|GoogleScholar Zak,P.,Kurzban,R.,andMatzner.(2004).Theneurobiologyoftrust.Ann.N.Y.Acad.Sci.1032,224–227.doi:10.1196/annals.1314.025 PubMedAbstract|CrossRefFullText|GoogleScholar Zak,P.,Stanton,A.A.,andAhmadi,S.(2007).Oxytocinincreasesgenerosityinhumans.PLoSONE2:e1128.doi:10.1371/journal.pone.0001128 PubMedAbstract|CrossRefFullText|GoogleScholar Keywords:decision-making,riskybehavior,riskycontext,riskycontent,cognitivefactors,emotionalandhormonalfactors Citation:KusevP,PurserH,HeilmanR,CookeAJ,VanSchaikP,BaranovaV,MartinRandAytonP(2017)UnderstandingRiskyBehavior:TheInfluenceofCognitive,EmotionalandHormonalFactorsonDecision-MakingunderRisk.Front.Psychol.8:102.doi:10.3389/fpsyg.2017.00102 Received:04December2016;Accepted:16January2017;Published:01February2017. Editedby: ClaudiaRepetto,CatholicUniversityoftheSacredHeart,Italy Reviewedby: TetianaHill,CranfieldUniversity,UK KatarzynaSekścińska,UniversityofWarsaw,Poland Copyright©2017Kusev,Purser,Heilman,Cooke,VanSchaik,Baranova,MartinandAyton.Thisisanopen-accessarticledistributedunderthetermsoftheCreativeCommonsAttributionLicense(CCBY).Theuse,distributionorreproductioninotherforumsispermitted,providedtheoriginalauthor(s)orlicensorarecreditedandthattheoriginalpublicationinthisjournaliscited,inaccordancewithacceptedacademicpractice.Nouse,distributionorreproductionispermittedwhichdoesnotcomplywiththeseterms. *Correspondence:PetkoKusev,[email protected] COMMENTARY ORIGINALARTICLE Peoplealsolookedat SuggestaResearchTopic>