An agent-based model for integrated emotion regulation and contagion in socially affected decision making

This paper addresses an agent-based computational social agent model for the integration of emotion regulation, emotion contagion and decision making in a social context. The model integrates emotion-related valuing, in order to analyse the role of emotions in socially affected decision making. The agent-based model is illustrated for the interaction between two persons. Simulation experiments for different kinds of scenarios help to understand how decisions can be affected by regulating the emotions involved, and how these emotions are affected by emotion regulation and contagion

Defining collective irrationality of COVID-19: shared mentality, mimicry, affective contagion, and psychosocial adaptivity

This paper defines the nature of collective irrationality that flourished during the COVID-19 pandemic and lays out specific individual and shared traits and dispositions that facilitate it. Drawing on the example of globally experienced phenomenon of panicked toilet paper buying and hoarding during the COVID-19 pandemic and resources from philosophy, psychology, sociology, and economics this paper identifies four essential features of collective irrationality: weak shared mentality; non-cognitive and immediate mimicry; affective contagion; and psychosocial adaptivity. After (I) initially pointing out conceptual problems around benchmarking collectivity and irrationality, this paper (II) identifies weak mentality as serving the goals of “group” recognition internally and externally. It is argued that (III) the non-cognitive and immediate mimicry and emotional contagion are shared and individual dispositional conditions that facilitate collective irrationality in environments affected by uncertainty (IV). The human mimetic faculty and susceptibility to emotional contagion are presented as enabling and augmenting conditions under which collective irrationality flourishes. Finally, (IV) presenting collective irrationality in the context of psychosocial adaptivity, the paper provides evolutionary reasons for engaging in irrational behaviors, rendering collective irrationality as an adaptive strategy

An inclusive taxonomy of behavioral biases

This paper overviews the theoretical and empirical research on behavioral biases and their influence in the literature. To provide a systematic exposition, we present a unified framework that takes the reader through an original taxonomy, based on the reviews of relevant authors in the field. In particular, we establish three broad categories that may be distinguished: heuristics and biases; choices, values and frames; and social factors. We then describe the main biases within each category, and revise the main theoretical and empirical developments, linking each bias with other biases and anomalies that are related to them, according to the literature

The effect of behavioral biases on financial decisions

Financial management decisions are made by people, and people, in all instances, are shaped by their behavioral traits. Here we provide extensive insight on the theoretical and empirical analysis made on cognitive biases and their influence on financial decisions. To provide a systematic exposition, we set three broad categories: heuristics and biases, choices (including framing and preferences) and social factors. We then describe the main biases within each category and provide an extensive revision of the main theoretical and empirical developments about their impact on financial decisions.Las decisiones de gestión financiera las toman las personas, y las personas, en todos los casos, están determinadas por sus rasgos de comportamiento. Aquí proporcionamos una visión amplia del análisis teórico y empírico realizado sobre los sesgos cognitivos y su influencia en las decisiones financieras. Para proporcionar una exposición sistemática, establecemos tres categorías amplias: heurísticas y sesgos, elecciones (incluidos encuadres y preferencias) y factores sociales. A continuación, describimos los principales sesgos dentro de cada categoría y proporcionamos una revisión exhaustiva de los principales desarrollos teóricos y empíricos sobre su impacto en las decisiones financieras

Using social and behavioural science to support COVID-19 pandemic response

The COVID-19 pandemic represents a massive global health crisis. Because the crisis requires large-scale behaviour change and places significant psychological burdens on individuals, insights from the social and behavioural sciences can be used to help align human behavior with the recommendations of epidemiologists and public health experts. Here we review experimental and correlational data from a selection of research topics relevant to pandemics, including work on navigating threats, social and cultural influences on behaviour, science communication, moral decision-making, leadership, and stress and coping. In each section, we note the nature and quality of prior research, including uncertainty and unsettled issues. We identify several insights for effective response to the COVID-19 pandemic, and also highlight important gaps researchers should move quickly to fill in the coming weeks and months

Using social and behavioural science to support COVID-19 pandemic response

The COVID-19 pandemic represents a massive global health crisis. Because the crisis requires large-scale behaviour change and places significant psychological burdens on individuals, insights from the social and behavioural sciences can be used to help align human behavior with the recommendations of epidemiologists and public health experts. Here we discuss evidence from a selection of research topics relevant to pandemics, including work on navigating threats, social and cultural influences on behaviour, science communication, moral decision-making, leadership, and stress and coping. In each section, we note the nature and quality of prior research, including uncertainty and unsettled issues. We identify several insights for effective response to the COVID-19 pandemic, and also highlight important gaps researchers should move quickly to fill in the coming weeks and months

Bad World: The Negativity Bias In International Politics

A major puzzle in international relations is why states privilege negative over positive information. States tend to inflate threats, exhibit loss aversion, and learn more from failures than from successes. Rationalist accounts fail to explain this phenomenon, because systematically overweighting bad over good may in fact undermine state interests. New research in psychology, however, offers an explanation. The “negativity bias” has emerged as a fundamental principle of the human mind, in which people\u27s response to positive and negative information is asymmetric. Negative factors have greater effects than positive factors across a wide range of psychological phenomena, including cognition, motivation, emotion, information processing, decision-making, learning, and memory. Put simply, bad is stronger than good. Scholars have long pointed to the role of positive biases, such as overconfidence, in causing war, but negative biases are actually more pervasive and may represent a core explanation for patterns of conflict. Positive and negative dispositions apply in different contexts. People privilege negative information about the external environment and other actors, but positive information about themselves. The coexistence of biases can increase the potential for conflict. Decisionmakers simultaneously exaggerate the severity of threats and exhibit overconfidence about their capacity to deal with them. Overall, the negativity bias is a potent force in human judgment and decisionmaking, with important implications for international relations theory and practice

How do Securities Laws Influence Affect, Happiness, & Trust?

This Article advocates that securities regulators promulgate rules based upon taking into consideration their impacts upon investors\u27 and others\u27 affect, happiness, and trust. Examples of these impacts are consumer optimism, financial stress, anxiety over how thoroughly securities regulators deliberate over proposed rules, investor confidence in securities disclosures, market exuberance, social moods, and subjective well-being. These variables affect and are affected by traditional financial variables, such as consumer debt, expenditures, and wealth; corporate investment; initial public offerings; and securities market demand, liquidity, prices, supply, and volume. This Article proposes that securities regulators can and should evaluate rules based upon measures of affect, happiness, and trust in addition to standard observable financial variables. This Article concludes that the organic statutes of the United States Securities and Exchange Commission are indeterminate despite mandating that federal securities laws consider efficiency among other goals. This Article illustrates analysis of affective impacts of these financial regulatory policies: mandatory securities disclosures; gun-jumping rules for publicly registered offerings; financial education or literacy campaigns; statutory or judicial default rules and menus; and continual reassessment and revision of rules. These regulatory policies impact and are impacted by investors\u27 and other people\u27s affect, happiness, and trust. Thus, securities regulators can and should evaluate such affective impacts to design effective legal policy