We test Baron’s (2008) hypothesis that affect can influence entrepreneurial behavior via its influence on risk preferences in an economic experiment. To the best of our knowledge, this is the first experiment that uses an incentive-compatible mechanism to test the influence of moods on risk preferences. Since entrepreneurs often have to make risky decisions with large consequences, our experiment also includes a treatment with very high financial stakes.
Michl, Theresa; Kollinger, Philipp D.; and Picot, Arnold
"IN THE MOOD FOR RISK? AN EXPERIMENT ON MOOD AND RISK PREFERENCES (SUMMARY),"
Frontiers of Entrepreneurship Research: Vol. 31
, Article 2.
Available at: http://digitalknowledge.babson.edu/fer/vol31/iss5/2