The Experimental Research Of Emotion Regulation Decreasing Individual's Irrational Risk Decision-making Under Negative Income Shocks

Research background: Negative income shocks are a pervasive phenomenon in social economy,and they also play a vital role in poverty.When individuals suffer from negative income shocks,deviation of emotion and risk decision-making will be triggered,which can cause the crisis in finance or other aspects for individuals and their households to a large extent.Hence,helping people to build a reasonable attitude and to actively cope with negative income shocks,is an important channel for people and their families to maintain financial security,which is also beneficial for the harmony and development of the society.Main research content: Via organizing and analyzing researches of behavioral economics,the research delineates the possible mechanism between different factors and reveals that negative income shocks can change people's risk-taking behaviors,with emotion as an important conduit: negative income shocks trigger people's negative emotions,and negative emotions further lead to irrational risk decision-making.On the basis of the mechanism,this study experimentally investigates attention distraction as the emotion regulation method to intervene individuals' irrational economic decisions and help them make more rational risk-taking behaviors.Additionally,the correlation between negative income shocks,negative emotion and risk-taking behaviors was also verified.Main results: Firstly,negative income shocks induce negative emotions,due to which individuals perform risk-aversion as immediate reaction.Secondly,after negative income shocks,attention distraction helps recover individuals' emotion states,leading to more rational risk decision-making based more on the fact.Research significance: This study provides theoretical and methodological basis for researches of relevant domains,and presents new perspective and suggestions for people to recognize and avoid irrational risk decision-making.