Emotions Flashcards
what is the paper on stock market returns and weather
Hirshleifer and Shumway (2003), weather of city where stock market located (26 countries, 1982-1997), negative relationship between cloud cover (de-trended from seasonal avg.) and aggregate stock returns in 18 of 26 cities, day with completely covered sky -> -0.11% daily stock returns, 5% std. dev
what is the motivation behind Loewenstein et al. (2015)
decisions part of two motivational processes:
Deliberative -> cognitive, reasonable, focused on broad goals
Affective -> reflexive, driven by passion and emotion, research so far: affect=unpredictable=un model-able,
Aim: propose formal model of decision-making under influence of deliberative and affective system
what is the setting of the paper developing a model of deliberative and affective processes
Loewenstein et al. (2015), TWO objective functions operating simultaneously
what is the equations for maximising the deliberative and affective processes from Loewenstein et al. (2015)
Deliberative (cognitive, rational) -> xD=argmaxU(x) Affective (reflexive) -> xA=argmaxM(x,a), a: intensity of affective motivation (how strong is emotional shock)
what is a in Loewenstein et al. (2015) model
intensity of affective motivation -> how strong is the emotional shock
how are decisions made in Loewenstein et al. (2015) model without defining cost fct.
deliberative system makes a final choice subject to exerting EFFORT to control the affective system. required effort depends on severity of conflict with affective system, but also willpower (W)
what is h(W,σ)
cost function of effort
for the Loewenstein et al. (2015) model of emotions, what will an increase in h(W,σ) (cost function of effort) lead to
more myopic behaviour
in the general model from Loewenstein et al. (2015), if a person faces a choice between the deliberative and the affective optimum xD and xA…
What are the things that make xD less likely?
What makes xA more likely?
willpower depletion or unrelated cognitive demands make it less likely that the person chooses xD
If affective intensity increases (decreases) the affective preference for option xA over xD,… … then affective intensity makes it less (more) likely that a person chooses xD
for Loewenstein et al. (2015) model, what will happen if there is an increase in the intensity of the affective motivation for the immediate payoff
will lead to more myopic behaviour
what is prediction I-1 from Loewenstein et al. (2015) about the effect of h(W,σ) and what would the effect of happiness be from Ifcher and Zarghamee (2011)
an increase in h(W,σ) will lead to more myopic behaviour -> happiness may increase willpower and reduce competing cognitive demands (I-1)
what is prediction I-2 from Loewenstein et al. (2015)
any factor that increases the intensity of the affective motivation for the immediate payoff will lead to more myopic behaviour -> happiness may increase affect for future activities
what is the Card and Dahl (2011) paper about
violence as extreme case of non-social preferences, significant amount of violence among married and unmarried couples –> Intimate-Partner-Violence (IPV)
what is the motivation behind the paper on violence as an extreme case of non-social preferences
Card and Dahl (2011), Two interpretations behind intimate-partner-violence: -Utility from domination and/or expressive behaviour (rational), -Unintentional expressive behaviour triggered by visceral factors (anger, fear), Claim: (American) football defeats -> short-run rise in anger, Investigate correlation between unexpected defeats of team and IPV
what is the model of the paper on violence after (American) football games
Card and Dahl (2011), xs and xo: well-being of individual and partner,
Treatment: anger ≈ depletion of willpower (W), Imagine affect for partner (a) is already very low or even negative ie strained relationship,
- Anger from football defeat will lower importance of partner’s well-being
- Anger will increase likelihood of IPV
