Research from Harvard University underscores the complex relationship between emotion and decision-making, particularly in financial contexts. A study led by Jennifer Lerner, the Thornton F. Bradshaw Professor of Public Policy, Decision Science, and Management at the Harvard Kennedy School, reveals that anger can significantly influence risk-taking behavior, particularly among men.
Lerner and her colleague, Rebecca Ferrer, a scientist with the National Institutes of Health, conducted experiments using the Balloon Analog Risk Task. This task simulates a gambling scenario where participants earn money by adding air to a virtual balloon. However, if they overinflate and burst it, they lose all accumulated earnings. The study found that men primed for anger displayed a propensity for greater risk-taking, resulting in higher financial gains compared to those experiencing neutral emotions or angry females.
This research challenges previous findings that suggested anger typically reduces risk perception. Lerner emphasized that their work focuses on actual risk-taking behavior rather than perceived risk, shedding light on how anger can drive more aggressive financial decisions among men.
Gender Dynamics in Risk-Taking
The exploration of gender and emotion is fraught with complexity, according to Lerner. She acknowledged the difficulties in categorizing adults strictly as male or female and understanding whether the observed differences arise from biological, social, or cultural factors. “There’s a large and interesting debate about whether males are more risk-taking in general,” Lerner stated. Her research offers a nuanced view, emphasizing that while men may act differently under emotional states like anger, individual traits and social contexts play a more significant role in decision-making than gender alone.
Lerner cautioned that the implications of risk-taking behavior are context-dependent. “Whether risk-taking turns out to be good or bad depends entirely on the situation,” she noted. The studies they designed rewarded risk-taking but acknowledged that many real-world scenarios might favor a more cautious approach.
Moreover, Lerner pointed out that while average differences exist, there is often more variation within genders than between them. Understanding the individual characteristics of decision-makers can provide more insights than relying solely on gender-based assumptions.
The Role of Emotion in Decision-Making
The increasing recognition of emotion as a critical factor in decision-making marks a significant shift in research focus. Lerner highlighted that although many believe emotion is crucial to understanding decisions, it has been largely understudied. Recent studies, including those from Lerner’s lab, have begun to investigate how emotional appeals in public health campaigns impact behaviors.
For instance, research led by Charlie Dorison demonstrated that inducing specific types of sadness could inadvertently increase smoking rates. Conversely, another study by Ke Wang identified the potential of gratitude to encourage smoking cessation. These findings contribute to a broader understanding of how emotions can influence behaviors associated with risk, such as gambling or substance use.
Lerner’s personal experiences with risk have shaped her views on decision-making. Diagnosed with lupus as a child, she faced significant health risks that could have influenced her decisions about having children. Instead of succumbing to fear, she and her husband examined scientific research to assess the actual risks involved. Their informed approach ultimately led them to welcome a daughter, who recently graduated from college.
Professionally, Lerner’s research spans various domains, including health, economics, national security, and climate change. She holds positions on several councils, including the board of the Forecasting Research Institute, which focuses on quantifying risks related to existential threats, such as artificial intelligence.
Lerner is also dedicated to promoting decision-making education. As an ambassador for the Alliance for Decision Education, she advocates for teaching decision-making skills in schools. Her executive education courses cater to professionals in high-stakes roles, emphasizing the importance of understanding risk and the influence of emotion.
“In today’s world, the ability to leverage information effectively is a crucial skill,” she stated. Lerner believes that everyone, not just leaders or analysts, should be equipped with the tools to estimate uncertainty and recognize how emotion can shape their judgments.
