Sex & the city. Are financial decisions driven by emotions? Our findings suggest that agents incorrectly attribute their good mood to positive economic perspectives rather than positive emotions

Sex & the city. Are financial decisions driven by emotions? Giampaolo Gabbi, Giovanna Zanotti. Journal of Behavioral and Experimental Finance, https://doi.org/10.1016/j.jbef.2018.10.005

Abstract: Although the role of irrationality in trading choices has been extensively discussed in the literature, individual incidental emotions have been neglected. We investigated emotional explanatory factors and trading choices in a sample of non-professional agents who managed a virtual financial positions pretending to be traders. Using a series of daily surveys over a five-week period as well as introductive inventory surveys, we constructed measures of core affect and emotions and correlated these with subjects’ financial choices. Our purpose is to test if the decision to buy or sell financial assets is affected by the emotional state of individuals, considering also gender clusters. A focus is on incidental emotions, detecting how positive emotions due to sexual activity may alter financial trading choices. Our findings suggest that agents incorrectly attribute their good mood to positive economic perspectives rather than positive emotions.