Two selves and two minds in a longitudinal survey of risk attitudes

Campara, Jéssica Pulino; Costa, Newton Da; Matsushita, Raul; Silva, Sergio Da

doi:10.1016/j.jbef.2020.100444

Cited by 8 publications

(5 citation statements)

References 31 publications

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“…The findings of this study regarding age and marital status are in contradiction with the results obtained by Rendall et al (2021). Campara et al (2021) examined the phenomenon of FRT in terms of experiencing and remembering selves (Kahneman et al, 1997;Kahneman, 2000). The results indicate that individual risk tolerance is higher when the choices and options are assessed by the remembering self than when judged by the experiencing self.…”

Section: Recent Developmentscontrasting

confidence: 99%

A qualitative phenomenological exploration of social mood and investors’ risk tolerance in an emerging economy

Asad

Toqeer

Mahmood

2021

QRFM

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Purpose The authors design a theoretical perspective that explores how different phases of social mood influence financial risk tolerance (FRT) among investors. Risk is involved in almost all financial decision-making. For a better understanding of risk tolerance behavior, the role played by social mood cannot be ignored. This study aims to explore the linkage between social mood and FRT of investors in Pakistan. Design/methodology/approach Using qualitative phenomenology as the guiding framework, 22 interviews were conducted to have a deeper understanding of the lived experiences of investors with at least 10 years of investment experience. Thematic analysis was done to analyze data. Audio-recording, bracketing, triangulation and member checking were done to ensure validity and reliability. Findings A theoretical model is developed using the six themes identified through thematic analysis. This model presents an in-depth analysis of the determinants of social mood, its multiple phases and its impact on risk tolerance behavior. Findings reveal that the level of financial literacy, experience and purpose of investment moderate the effect of social mood on FRT. Practical implications Investors can manage risk and increase their profits by controlling the effects of social mood. They can benefit from the market situation by taking more risk when the market is extremely low. The advisors can frame their advice in the light of the model. Originality/value According to the authors’ knowledge, this is the first study that explores investors’ risk tolerance in response to variations in social mood in the context of an emerging economy. The paper has contributed conceptually and methodologically. It uses phenomenology as the method and develops a theoretical model that describes how different types of investors adjust their risk tolerance in response to changes in their social mood.

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Section: Recent Developmentscontrasting

confidence: 99%

A qualitative phenomenological exploration of social mood and investors’ risk tolerance in an emerging economy

Asad

Toqeer

Mahmood

2021

QRFM

View full text Add to dashboard Cite

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“…Of note, it is the 'remembering self' that responds to questionnaires, and so responses are expected to be biased by memory (Campara et al, 2021). Ideally, one should give a voice to the 'experiencing self'.…”

Section: Datamentioning

confidence: 99%

“…However, we think this problem does not arise in the critical Question 6. Because of its comparative format, participants are likely to make 'System 2 judgments' and not based on memory (Campara et al, 2021).…”

Section: Datamentioning

confidence: 99%

Marriage, Quarrels, and Lovemaking

Silva

Cordeiro

2021

Studies in Microeconomics

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“…We address this task in this article. A critical caveat is that when testing hypotheses by survey evidence, we should not ignore that people make judgments by memory using their ‘remembering self’, and this is biased; the ‘experiencing self’ is more reliable (Campara et al, 2021; Kahneman, 2011). In particular, judgments based on the experiencing self are superior to deciding between the competing explanations above.…”

Section: Introductionmentioning

confidence: 99%

Why Is Friday Better than Sunday?

Silva

Matsushita

Korzenowski

2022

Journal of Interdisciplinary Economics

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We present survey evidence that most people prefer Friday to Sunday. Moreover, we pit against one another two explanations for this fact, the joy of anticipation hypothesis and the Weber law. According to the joy of anticipation hypothesis, Friday promises a weekend ahead, and Sunday does not. The Weber law predicts a relative decrease in the perception of interesting new events as the weekend passes, contributing to the impression that time is shortened as Sunday comes. Our findings favour the joy of anticipation hypothesis. JEL: D91, D15

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Two selves and two minds in a longitudinal survey of risk attitudes

Cited by 8 publications

References 31 publications

A qualitative phenomenological exploration of social mood and investors’ risk tolerance in an emerging economy

A qualitative phenomenological exploration of social mood and investors’ risk tolerance in an emerging economy

Marriage, Quarrels, and Lovemaking

Why Is Friday Better than Sunday?

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