Emotions In Economic Theory & Economic Behavior

The Must Read Paragraph: (Via Lowenstein)

“Underestimation is most severe when people are not currently in a visceral state. When in a “cold” state (i.e. not hungry, angry, in pain, etc), it is difficult to imagine what it would feel like to be in a “hot” state or to imagine how one might behave in such a state. Likewise, when in a “hot” state (i.e., craving, angry, jealous, sad, etc) people have difficulty imagining themselves in a cold state and thus miscalculate the speed with which such a state will dissipate”

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26. December 2009 by Miguel Barbosa
Categories: Behavioral Economics, Curated Readings | Leave a comment

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