The Role Of Temporal Distance On Risk Preference: Mediate Effect Of Emotion

Based on Construal Level, investigate the effect of temporal distance on risk preference and apossible mental mechanism that may play a role in the associations when people making decisionsunder risk and uncertainty.This research spans two studies. Study1was designed to compare riskpreference in decision-making between the near future and the long-term future under risk anduncertainty. Study2was designed to investigate weather emotion may play a role in the temporaldistance and risk preference. It was found:1. In the decision-making under risk, compared with making decisions in the near future,participants preferred higher risk taking when making decisions in the long-term future under thegain condition, but not under the lose condition. In the decision-making under uncertainty,compared with making decisions in the near future, participants preferred higher risk taking whenmaking decisions in the long-term future under both of the skill elements and random eventsconditions, but interaction of temporal distance and decision-making situations is not significant.2. In the decision-making under risk, emotion mediated the impact of temporary distance onrisk preference under the gain condition. Compared with the long-term future events, individualsproduce more positive emotions of the near future events, individuals preferred lower risk takingwhen they are in a positive emotional state, but not under the lose condition. In thedecision-making under uncertainty, emotion partially mediated the impact of temporary distanceon risk preference under the skill elements condition, but not under the random events condition.These results suggested a significant effect of temporary distance on the risk preference andemotion may be the mental mechanism of them.