The effect of positive feelings on risk taking: When the chips are down

Abstract

Two studies conducted simultaneously investigated the influence of positive affect on risk taking. Results of the study, which employed an actual measure of subjects' willingness to bet something of value, supported the prediction of an interaction between level of risk and positive affect: subjects who had reason to be feeling elated bet more than control subjects on a low-risk bet, but wagered less than controls on a high-risk bet. At the same time, in contrast, a study involving hypothetical risk-taking showed that in general subjects were more willing to take the chance as probability of success went up; but that elated subjects were more daring than controls on a “long shot.” Differences in hypothetical vs real risk taking were noted, and the complexity (the interaction) of the influence of positive feelings on real risk taking was emphasized. The results were related to other research suggesting an influence of feeling states on cognitive processes and decision making.