Dataset Information

People's Financial Choice Depends on their Previous Task Success or Failure.

ABSTRACT: Existing knowledge about the impact of the experience prior to financial choices has been limited almost exclusively to single risky choices. Moreover, the results obtained in these studies have not been entirely consistent. For example, some studies suggested that the experience of success makes people more willing to take a risk, while other studies led to the opposite conclusions. The results of the two experimental studies presented in this paper provide evidence for the hypothesis that the experience of success or failure influences people's financial choices, but the effect of the success or failure depends on the type of task (financial and non-financial) preceding a financial decision. The experience of success in financial tasks increased participants' tendency to invest and make risky investment choices, while it also made them less prone to save. On the other hand, the experience of failure heightened the amount of money that participants decided to save, and lowered their tendency to invest and make risky investment choices. However, the effects of the experience of success or failure in non-financial tasks were exactly the opposite. The presented studies indicated the role of the specific circumstances in which the individual gains the experience as a possible way to explain the discrepancies in the results of studies on the relationship between the experience prior to financial choice with a tendency to take risks.

SUBMITTER: Sekscinska K

PROVIDER: S-EPMC4646967 | biostudies-literature |

REPOSITORIES: biostudies-literature

ACCESS DATA

Similar Datasets

Project description:People sometimes persistently pursue hard-to-get targets. Why people pursue such targets is unclear. Here, we hypothesized that choice perseverance, which is the tendency to repeat the same choice independent of the obtained outcomes, leads individuals to repeatedly choose a hard-to-get target, which consequently increases their preference for the target. To investigate this hypothesis, we conducted an online experiment involving an avatar choice task in which the participants repeatedly selected one avatar, and the selected avatar expressed their valence reactions through facial expressions and voice. We defined "hard-to-get" and "easy-to-get" avatars by manipulating the outcome probability such that the hard-to-get avatars rarely provided a positive reaction when selected, while the easy-to-get avatars frequently did. We found that some participants repeatedly selected hard-to-get avatars (Pursuit group). Based on a simulation, we found that higher choice perseverance accounted for the pursuit of hard-to-get avatars and that the Pursuit group had significantly higher choice perseverance than the No-pursuit group. Model fitting to the choice data also supported that choice perseverance can account for the pursuit of hard-to-get avatars in the Pursuit group. Moreover, we found that although baseline attractiveness was comparable among all avatars used in the choice task, the attractiveness of the hard-to-get avatars was significantly increased only in the Pursuit group. Taken together, we conclude that people with high choice perseverance pursue hard-to-get targets, rendering such targets more attractive. The tolerance for negative outcomes might be an important factor for succeeding in our lives but sometimes triggers problematic behavior, such as stalking. The present findings may contribute to understanding the psychological mechanisms of passion and perseverance for one's long-term goals, which are more general than the romantic context imitated in avatar choice.

Dataset Information

People's Financial Choice Depends on their Previous Task Success or Failure.

Similar Datasets

OmicsDI is part of the ELIXIR infrastructure

Tweets