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The Impact of Positive and Negative Affect and Issue Framing on Issue Interpretation and Risk Taking,☆☆

https://doi.org/10.1006/obhd.1998.2808Get rights and content

Abstract

Two studies examined the influence of transient affective states and issue framing onissue interpretationandrisk takingwithin the context of strategic decision making. In Study 1, participants in whom transient positive or negative affective states were induced by reading a short story showed systematic differences in issue interpretation and risk taking in a strategic decision making context. Compared to negative mood participants, those in a positive mood were more likely to interpret the strategic issue as an opportunity and displayed lower levels of risk taking. Study 2 replicated and extended these results by crossing affective states with threat and opportunity frames. Results showed that framing an issue (as a threat or an opportunity) had a stronger impact on issue interpretation among negative affect participants than among positive affect participants. Affective states also moderated the impact of issue framing on risk taking: the effect of framing on risk-taking was stronger under negative rather than positive affect. These results are interpreted via information-processing and motivational effects of affect on a decision maker.

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    This paper is based on the first author's dissertation chaired by the second author. We thank Max Bazerman for his feedback on an earlier draft of the paper.

    ☆☆

    Joseph, P. Forgas

    f2

    Address reprint requests and correspondence to Vikas Mittal, Department of Marketing, Katz Graduate School of Business, University of Pittsburgh, 360 Mervis Hall, Pittsburgh, PA 15260.

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