News

Paper by Marja-Liisa Halko and Markku Kaustia published in PLOS ONE

"Risk ON / Risk OFF: Risk-Taking Varies with Subjectively Preferred and Disliked Music" by Marja-Liisa Halko and Markku Kaustia

"Risk ON / Risk OFF: Risk-Taking Varies with Subjectively Preferred and Disliked Music" by  Marja-Liisa Halko and Markku Kaustia, PLOS ONE, August 24, 2015.

Abstract: In this paper we conduct a within-subjects experiment in which teenagers go over 256 gambles with real money gains and losses. For each risky gamble they choose whether to participate in it, or pass. Prior to this main experiment subjects identify specific songs belonging to their favorite musical genre, as well as songs representing a style they dislike. In the main experiment we vary the music playing in the background, so that each subject hears some of their favorite music, and some disliked music, alternating in blocks of 16 gambles. We find that favorite music increases risk-taking (‘risk on’), and disliked music suppresses risk-taking (‘risk off’), compared to a baseline of no music. Literature in psychology proposes several mechanisms by which mood affects risk-taking, but none of them fully explain the results in our setting. The results are, however, consistent with the economics notion of preference complementarity, extended to the domain of risk preference. The preference structure implied by our results is more complex than previously thought, yet realistic, and consistent with recent theoretical models. More generally, this mechanism offers a potential explanation to why risk-taking is known to change over time and across contexts.

  • Published:
  • Updated:
Share
URL copied!

Read more news

ABB_Aalto_laitelahjoitus_Kuva_Aalto-yliopisto.jpg
Cooperation, Research & Art Published:

Closer cooperation between Aalto and ABB Marine & Ports

ABB Marine & Ports and their equipment supplier Typhoon HIL are donating six simulators for researcher and student use.
Shimmering Wood sneaker designed by by Noora Yau & Konrad Klockars. Photo: Kalle Kataila
Research & Art Published:

Your invitation to Life 1.5

Save the date/planet: Welcome to our fourth Designs for a Cooler Planet festival, 7.9–12.10.2022 in Otaniemi, Espoo.
Professor Zhipei Sun, photo: Niina Norjamäki/Aalto University
Research & Art Published:

Top-up funding for Aalto University to exploit research results

Aalto University Professor Zhipei Sun is leading one of the potential frontier research projects.
Työelämäprofessori Sebastian Schlecht soittamassa virtuaalimaailmassa. Kuva: Aalto-yliopisto
Research & Art Published:

Inside the Quartet takes the audience to the virtual world of string quartets

Professional acoustics and sound specialists have been involved in implementing the virtual reality installation that will be on display in Hanover and Helsinki in May and at Our Festival in Järvenpää and Tuusula in July.