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Research Report
Investment Behavior and the Negative Side of Emotion
Baba Shiv 1 , George Loewenstein 2 , Antoine Bechara 3 , Hanna Damasio 3 , and Antonio R. Damasio 3
  1 Stanford University,   2 Carnegie Mellon University, and   3 University of Iowa
 Address correspondence to Baba Shiv, Graduate School of Business, 518 Memorial Way, Stanford, CA 94305-5015; e-mail: shiv_baba@gsb.stanford.edu.
Copyright Copyright © 2005 American Psychological Society

Abstract—

AbstractMETHODRESULTS AND DISCUSSIONCONCLUSIONSAcknowledgments References

Abstract—Can dysfunction in neural systems subserving emotion lead, under certain circumstances, to more advantageous decisions? To answer this question, we investigated how normal participants, patients with stable focal lesions in brain regions related to emotion (target patients), and patients with stable focal lesions in brain regions unrelated to emotion (control patients) made 20 rounds of investment decisions. Target patients made more advantageous decisions and ultimately earned more money from their investments than the normal participants and control patients. When normal participants and control patients either won or lost money on an investment round, they adopted a conservative strategy and became more reluctant to invest on the subsequent round; these results suggest that they were more affected than target patients by the outcomes of decisions made in the previous rounds.


(Received 5/27/04; Revision accepted 11/10/04)

DIGITAL OBJECT IDENTIFIER (DOI)
10.1111/j.0956-7976.2005.01553.x About DOI

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