The Effect of Induced Mood on Traders’ Preferences in Asset Markets – Experimental Evidence
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Shireen Meer and Yaron Lahav study the effect of induced positive and negative moods on traders’ willingness to trade (pay and accept) in experimental asset markets. They conduct experimental asset markets where subjects undergo a mood induction procedure prior to trade. After the subjects are induced with either negative or positive affect, they can trade an experimental asset with a known stream of dividends for a known number of periods.
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