Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2019-06-21
Number: 19-042/I
Author-Name: Jan Engelmann
Author-Workplace-Name: University of Amsterdam
Author-Name: Maël Lebreton
Author-Workplace-Name: University of Geneva
Author-Name: Peter Schwardmann
Author-Workplace-Name: LMU Munich
Author-Name: Joël van der Weele
Author-Workplace-Name: University of Amsterdam
Author-Name: Li-Ang Chang
Author-Workplace-Name: CREED - University of Amsterdam
Title: Anticipatory Anxiety and Wishful Thinking
Abstract: It is widely hypothesized that anxiety and worry about an uncertain future lead to the adoption of comforting beliefs or "wishful thinking". However, there is little direct causal evidence for this effect. In our experiment, participants perform a visual pattern recognition task where some patterns may result in the delivery of an electric shock, a proven way of inducing anxiety. Participants engage in significant wishful thinking, as they are less likely to correctly identify patterns that they know may lead to a shock. Greater ambiguity of the pattern facilitates wishful thinking. Raising incentives for accuracy does not significantly decrease it.
Classification-JEL: D83, C91
Keywords: confidence, beliefs, anticipatory utility, anxiety, motivated cognition
File-URL: https://papers.tinbergen.nl/19042.pdf
File-Format: application/pdf
File-Size: 1067304 bytes
Handle: RePEc:tin:wpaper:20190042