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The E ff ect of A ff ect on Economic and Strategic Decision Making ∗
| Content Provider | Semantic Scholar |
|---|---|
| Author | Hermalin, Benjamin E. Isen, Alice M. |
| Copyright Year | 1999 |
| Abstract | The standard economic model of decision making assumes a decision maker makes her choices to maximize her utility or happiness. Her current emotional state is not explicitly considered. Yet there is a large psychological literature that shows that current emotional state, in particular positive affect, has a significant effect on decision making, problem solving, and behavior. This paper offers a way to incorporate this insight from psychology into economic modeling. Moreover, this paper shows that this simple insight can parsimoniously explain a wide variety of behaviors. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://faculty.haas.berkeley.edu/hermalin/affect.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
