Affect, Affective Precision, and Primacy Effect in Stock Choices

We investigated the role of affect in choices that involve numerical information. Our study showed that affect was generated within a local rather than global context and significantly predicted choices. Participants’ affect toward the best stock in each of two set were significantly higher than the other stocks in the set even though some of these other stocks were normatively better. In addition, choice reflected a strong primacy effect of the set. A new construct, affective precision (self-reported clarity of feelings) toward stock options significantly contributed to prediction of choices above and beyond affect and the primacy effect.



Citation:

Namika Sagara and Ellen Peters (2007) ,"Affect, Affective Precision, and Primacy Effect in Stock Choices", in NA - Advances in Consumer Research Volume 34, eds. Gavan Fitzsimons and Vicki Morwitz, Duluth, MN : Association for Consumer Research, Pages: 461-465.

Authors

Namika Sagara, University of Oregon, Decision Research
Ellen Peters, University of Oregon, Decision Research



Volume

NA - Advances in Consumer Research Volume 34 | 2007



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