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      Emotion and decision making.

      Annual review of psychology
      affect, appraisal tendency, behavioral economics, choice, judgment, mood

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          Abstract

          A revolution in the science of emotion has emerged in recent decades, with the potential to create a paradigm shift in decision theories. The research reveals that emotions constitute potent, pervasive, predictable, sometimes harmful and sometimes beneficial drivers of decision making. Across different domains, important regularities appear in the mechanisms through which emotions influence judgments and choices. We organize and analyze what has been learned from the past 35 years of work on emotion and decision making. In so doing, we propose the emotion-imbued choice model, which accounts for inputs from traditional rational choice theory and from newer emotion research, synthesizing scientific models.

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          Most cited references92

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          The affect heuristic in judgments of risks and benefits

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            Out of Control: Visceral Influences on Behavior

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              Spending money on others promotes happiness.

              Although much research has examined the effect of income on happiness, we suggest that how people spend their money may be at least as important as how much money they earn. Specifically, we hypothesized that spending money on other people may have a more positive impact on happiness than spending money on oneself. Providing converging evidence for this hypothesis, we found that spending more of one's income on others predicted greater happiness both cross-sectionally (in a nationally representative survey study) and longitudinally (in a field study of windfall spending). Finally, participants who were randomly assigned to spend money on others experienced greater happiness than those assigned to spend money on themselves.
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                Author and article information

                Journal
                25251484
                10.1146/annurev-psych-010213-115043

                affect,appraisal tendency,behavioral economics,choice,judgment,mood

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