Researchers are increasingly exploring the role of emotions in interactive decision‐making. Recent theories have focused on the interpersonal effects of emotions-the influence of the decisionmaker’s expressed emotions on observers’ decisions and judgments. In this paper, we examine whether...

This study investigates the relationship between an actor’s beliefs about others’ other-regarding (social) preferences and her own other-regarding preferences, using an “avant-garde” hierarchical Bayesian method. We estimate two distributional other-regarding preference parameters, α...

The current study aims to investigate how the presence of social norms defines belief formation on future changes in social identity (i.e., diachronic identity), and how those beliefs affect individual decisions under uncertainty. The paper proposes a theoretical model in which individuals have...

The theoretical literature on risk aversion and Expected Utility Theory is extensive; however, the analysis of this behaviour with natural experiments could be more comprehensive. In this paper, we use data from 120 episodes of the Portuguese version of the TV game show The Price is Right, namely...

When a firm finances a new project by issuing debt, it has an incentive to invest in excessively high-risk projects because shareholders enjoy all the benefits in case the project is successful but have limited liability when it fails. Anticipating such behavior, creditors may require a higher...

Most forms of risky behavior reach their peak during adolescence. A prominent line of research is exploring the relationship between people’s emotional self-efficacy and risk taking, but little is known about this relationship in the cognitive-deliberative domain among adolescents. The main...