We use a simple version of the Psychological Expected Utility Model (Caplin and Leahy, QJE, 2001) to analyze the optimal choice of information accuracy by an individual who is concerned with anticipatory feeling. The individual faces the following trade-off: on the one hand information may lead...

Using cross-sectional and longitudinal data from a national sample spanning the adult life span, age differences in anger and sadness were explored. The cross-sectional and longitudinal findings consistently suggest that the frequency of anger increases during young adulthood, but then shows a...

We investigate experimentally whether emotions affect bidding behavior in a firstprice auction. To induce emotions, we confront subjects after a first auction series with apositive or negative random economic shock. We then explore the relation between emotions andbidding behavior in a second...