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Guest Blogs

March 7, 2012

The Rationalizer: does awareness of emotions facilitate rational descision making?


M.C.L. Maan, A.J. Cupido & M.W. van Moll
 
For a long time, people assumed that economical decisions were based on rationality. However, after economical and psychological research showed that emotions influence decision-making, this assumption became less reliable. Apparently, an increase of the arousal level in a person can lead to more emotional, and less rational decisions. Since this leads to the reflection effect, the influence of emotions on decision-making is especially unfavourable to home traders.

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