Financial Decision Making in Hard and Prosperous Times

Kobe Millet, VU Amsterdam, The Netherlands
Lien Lamey, Lessius University College and KU Leuven, Belgium
Bram Van den Bergh , Erasmus University Rotterdam, The Netherlands
Two experiments and one time-series study examined how business cycle fluctuations influence financial decisions. Whereas people are drawn toward gains during expansions, they are drawn toward avoiding losses during economic contractions. This suggests that business cycle fluctuations might trigger separate motivational systems that affect financial decisions.
[ to cite ]:
Kobe Millet, Lien Lamey, and Bram Van den Bergh (2011) ,"Financial Decision Making in Hard and Prosperous Times", in NA - Advances in Consumer Research Volume 39, eds. Rohini Ahluwalia, Tanya L. Chartrand, and Rebecca K. Ratner, Duluth, MN : Association for Consumer Research, Pages: 10_11.