xDelia final report: emotion-centred financial decision making and learning

xDelia is a 3-year pan-European project building on the knowledge, skills, and competences of seven partner organisations from a variety of research disciplines and from business. The principal objective of xDelia is to develop technology-enhanced learning approaches that help improve the financial decision making of investors who trade frequently using an electronic trading platform. We focus on emotions, and how they affect maladaptive decision biases and trading performance. Our earlier field work with traders has shown that the development of emotion regulation skills is a key facet of trader expertise. For that reason we consider expert traders our benchmark for adaptive behaviour rather than normative rationality. Our goal is to provide investors with the tools and techniques to develop greater self-awareness of internal states, increase their ability to reflect critically on emotion-informed choices, develop emotion management skills, and support the transfer of these skills to the real-world practice setting of financial trading. This report provides a comprehensive overview of what xDelia is about and what we have achieved over the life of the project. In the sections that follow, we explain the decision problems investors are faced with in a fast paced environment and the limitations of traditional approaches to reduce cognitive errors; introduce an alternative, technology-enhanced learning approach of diagnosis and feedback, skill development, and transfer; describe the learning intervention comprising twelve autonomous learning elements that we have developed; and present evidence from thirty-five studies we have conducted on learning effects and stakeholder acceptance

LISS panel > Financial Literacy

This study consists of five questions concerning people’s financial literacy

Brief Emotion Regulation Training Facilitates Arousal Control During Sexual Stimuli

Disgust, a negative emotion which evokes strong behavioral avoidance tendencies, has been associated with sexual dysfunction. Recently, it was postulated that healthy sexual functioning requires a balance between excitatory (increased sexual arousal) and inhibitory processes (lowered disgust levels). This suggests that amplification of excitatory processes (like sexual arousal) could be a valuable addition to treatments for affect-based sexual dysfunctions. The major aim of the present study was to establish whether up-regulation could effectively enhance arousal levels during sexual stimuli, and whether such a training would simultaneously reduce disgust. Students (N = 163, mean age= 20.73 years, SD = 2.35) were trained in up-regulation of affect using either a sexual arousal film (i.e., female-friendly erotic movie) or a threat arousal film clip (i.e., horror movie), while control groups viewed the films without training instructions. Following this, participants viewed and rated state emotions during a series of pictures (sexual, disgusting, or neutral). Up-regulation of mood successfully enhanced general arousal in both groups, yet these arousal levels were not paralleled by reductions in disgust. Overall, the findings indicate that emotion regulation training by maximizing positive affect and general arousal could be an effective instrument to facilitate affect-related disturbances in sexual dysfunctions

LISS panel > Are Effective Emotion Regulation Strategies Associated with Financial Capability?

In August 2010, the LISS panel completed a questionnaire on emotions and finance. The major aim of this study is to examine whether higher levels of effective emotion regulation strategies are associated with higher levels of financial capability overall, and for the five separate domains (making ends meet, keeping track of one’s finance, staying informed on financial products, how individuals go about selecting a financial product, and planning ahead)

Nausea in specific phobia of vomiting

Specific phobia of vomiting (SPOV) is a clinical condition with early onset, chronic course and substantial psychosocial impairment due to a rigorous avoidance behavior. A primary symptom which drives patients to consult a medical practitioner is nausea. In this study our aim was to further analyze this symptom of SPOV and examined its role in the development and manifestation of the phobia. We conducted an internet survey in the german SPOV-internet-forum. We calculated a nausea score and grouped participants in a high- and low-nausea group to examine the relationship between nausea and characteristics of the fear of vomiting. In this sample (N = 131), nausea was fairly common in most participants with fear of vomiting. Participants in the high-nausea group had significantly higher ratings of subjective fear and significantly longer duration of fear of vomiting. Additionally, the high-nausea group contained more participants with a body mass index below 19 than the low-nausea group. The present findings suggest that nausea is a core symptom in SPOV which is closely related to intensity of the fear, duration of the fear, and body weight. Future research should investigate if nausea-specific design of treatment could improve therapy outcome.(VLID)217346

The Multi-Dimensional Blood/Injury Phobia Inventory:Its psychometric properties and relationship with disgust propensity and disgust sensitivity

The Multi-Dimensional Blood Phobia Inventory (MBPI: Wenzel &amp; Holt, 2003) is the only instrument available that assesses both disgust and anxiety for blood-phobic stimuli. As inflated levels of disgust propensity (i.e., tendency to experience disgust more readily) are often observed in blood phobia, the MBPI appears a promising instrument for disgust research. First, we examined its psychometric properties. Next, it was examined whether disgust sensitivity (i.e., considering experiencing disgust as something horrid) had added predictive value compared to disgust propensity in blood phobia. Therefore, students and university employees (N= 616) completed the MBPI, indices on blood phobia, disgust propensity and sensitivity.The MBPI proved to be reliable and valid. Further, it correlated moderately to high with disgust propensity and sensitivity. Additionally, disgust propensity and sensitivity were both significant predictors for blood phobia. In conclusion, the MBPI-appears a valuable addition to the currently available arsenal of indices to investigate blood phobia. (C) 2010 Elsevier Ltd. All rights reserved.</p

Sympathetic and parasympathetic responses to a core disgust video clip as a function of disgust propensity and disgust sensitivity

It is generally assumed that disgust is accompanied by increased activation of the parasympathetic nervous system (PNS). However, empirical support for the role of PNS in disgust is scarce. This study tested whether (i) activation of the PNS is indeed involved in disgust and (ii) disgust-induced autonomic activation is especially pronounced in individuals with high disgust propensity or enhanced disgust sensitivity. Participants (N = 60) viewed a 5 min disgust-inducing video clip. Participants showed increased parasympathetic activity of both the cardiac and the digestive components of the autonomic nervous system (ANS), together with increased sympathetic activation of the cardiac system. ANS responses were independent of subjective disgust and individuals' habitual disgust propensity or sensitivity. Results support the hypothesis that PNS activation is involved in disgust. The absence of a relationship between subjective and physiological indices of disgust indicates that both types of responses reflect independent phenomena. (C) 2011 Elsevier B.V. All rights reserved

The Disgust Propensity and Sensitivity Scale - Revised:Its predictive value for avoidance behavior

Disgust propensity appears involved in psychopathology. However, current disgust propensity indices display inflated correlations with psychopathology indices due to conceptual overlap. The recently developed Disgust Propensity and Sensitivity Scale - Revised (DPSS-R) is unique in that it measures disgust propensity irrespective of specific elicitors. Although psychometric research confirmed its factor-structure, its predictive validity remains to be established. Therefore, the goal of this study is to test its predictive validity for avoidance behavior in a series of disgusting tasks. Preselected participants (N = 60) with varying levels of disgust propensity engaged in seventeen behavioral tasks. Supporting its predictive validity, higher DPSS-R scores were associated with completing fewer behavioral actions. Additionally, the DPSS-R had added predictive value over and above traditional trait disgust indices. Crown Copyright (C) 2010 Published by Elsevier Ltd. All rights reserved